Introduction to Inventory Cost Audit Program
The Cost Auditor will observe inter alia, the following:
(a) Is the size of the inventory sufficient or excessive ass compared with the production programme?
(b) Does it make sure optimum order size?
(c) Is the provisioning drilled most economical?
(d) Does it take into consideration the storage cost on the one carrying cost on the other?
(e) Does it take note land time of the several item or group of items?
(f) Is there any room for reduction of inventory cost reliable with production needs?
(g) Is the inventory as per the priced store ledger and certified through the Management physically correct ?
(h) Does the receipt and issue system reason any bottleneck in production?
(i) Does it include several forms and too much paperwork?
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