………….is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory

Related MCQs

• PP Ltd is preparing the production and material purchase budgets for one of their products, The SUPERX for the forthcoming year. The following information is available: Sales demand (units) 30000 Material usage per unit 7 kgs Estimated opening inventory 3500 units Required closing inventory 35% higher than opening inventory How many units of the SUPERX will need to be produced?
• Inventory turnover ratio = Cost of inventory consumed during the period ÷ Cost of ……………………held during the period
• Inventory turnover ratio = Cost of …………………..during the period ÷ Cost of average inventory held during the period.
• Annual usage, ₹ 1,20,000.00, cost of placing ₹ 60.00 & annual carrying cost is 10% of the inventory value. The EOQ will be:-
• A technique of inventory control where materials are analyzed according to their values so that costly and more valuable materials are given greater attention and care.
• ………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.
• Material costs which cannot be allocated but which are to be apportioned or absorbed by cost centres or cost units.
• A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under : Factory overheads 60% of direct wages Administrative overheads 20% of work cost Selling and distribution overheads 25% of work cost it is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
• ………………….budget may be classified into material cost budget, labour cost budget and overhead budget.
• In this technique of selective control, materials are analysed according to their value so that costly and more valuable materials are given greater attention and care