A company observes that the consumption of raw materials varies between 300 units and 900 units per week. The lead time ranges from 3 weeks to 7…
CA Intermediate · Cost and Management Accounting · MTP · January 2026
A company observes that the consumption of raw materials varies between 300 units and 900 units per week. The lead time ranges from 3 weeks to 7 weeks, and the reorder quantity is 2000 units. What is the maximum stock level?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
7,400 units
Topics: Material Cost
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