The management of Gamma Limited has provided the following information for Product X: Maximum Stock Level 1125 units Re-Ordering Level (ROL) 750…
CA Intermediate · Cost and Management Accounting · PYQS · May 2026
The management of Gamma Limited has provided the following information for Product X: Maximum Stock Level 1125 units Re-Ordering Level (ROL) 750 units Minimum rate of consumption per day 25 units Minimum lead time 5 units What is the Re-Order Quantity (ROQ)?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
500 units
Topics: Material Cost
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