For an Item Under Continuous Review,the On-Hand Inventory Is Only

question 99

Multiple Choice

For an item under continuous review,the on-hand inventory is only 20 units and the reorder point R is 100 units.There are no backorders,but there is one open order for 90 units.Which one of the following statements is TRUE?

• A) There is no need to order at the present time.
• B) The current inventory position is 100 units.
• C) An order should be placed now for 20 units.
• D) An order should be placed now for 10 units.

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Definitions:

Asset's Value

The monetary worth assigned to an asset, based on factors like market value, cost, and depreciation.

Benefit Period

The duration during which benefits, such as those from an insurance policy or investment, are paid out.

Depreciation Expense

The distribution of a physical asset's expense over its lifespan, mirroring its decrease in worth as time progresses.

Estimated Depreciation

A projected amount of depreciation expense for an asset, reflecting its anticipated decline in value over a specified period due to wear and tear or obsolescence.