Principles of the material control system


Question 1: Explain the meaning, objectives and the basic principles of the material control system.

Question 2: Illustrate any six methods of pricing the issue of materials.

Question 3: What do you mean by the term Reordering Level? Describe its relationships with Maximum and Minimum Stock Levels. Illustrate the factors to be considered in fixing reordering level and quantity? Under what conditions would you propose revision of levels?

Question 4: Differentiate between:

a) Perpetual Inventory System and Continuous Stock-taking.
b) Bill of Materials and Material Requisition Note.

Question 5: In materials management, what do you understand by:

a) Maximum Level
b) Minimum Level
c) Ordering Level

Question 6: What are the significant requirements of a system of the material control?

Question 7: Describe the functions and merits of a Centralized Purchase Department of the manufacturing concern.

Question 8: Describe the various factors which affect the selection of a specific method of pricing the issues of materials from the stores?

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Cost Accounting: Principles of the material control system
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