The following information are available for XYZ Corporation’s Material E. Annual usage= 12,600 units Working days per year= 360days Normal lead time= 20days The units of Material E are required evenly throughout the year. What is the reorder point
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The following information are available for XYZ Corporation’s Material E.
Annual usage= 12,600 units
Working days per year= 360days
Normal lead time= 20days
The units of Material E are required evenly throughout the year.
What is the reorder point?
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