Select which one is the method for material issue pricing.

a.

Weighted average method

b.

Economic order quantity

c.

Reorder level

d.

ABC analysis

To calculate cost of sales, the selling and distribution overheads are added to.

a.

Works cost

b.

Prime cost

c.

Indirect material

d.

Cost of production

If economic order quantity is 1,500 units and consumption in units for one year are 15,000 units, then number of orders in a year will be:

a.

6 orders

b.

10 orders

c.

5 orders

d.

12 orders

Calculate Minimum level using the following information.

Normal rate of consumption is 60 kg per week

Maximum reorder period is 14 weeks

Normal reorder period is 8 weeks

Minimum reorder period is 6 weeks

Minimum rate of consumption is 55 kg per week

Maximum rate of consumption is 65 kg per week

a.

490 kg

b.

310 kg

c.

430 kg

d.

250 kg