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.

Related MCQs

• 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
• 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?
• ………………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.
• ………….is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory
• 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.
• _______ technique is a selective control of materials
• The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….
• . This is a level at which normal issues of materials are stopped and urgent action is taken for procurement of materials
• If re-ordering level is 450 units while consumption of materials are 25-27 units and materials are received within 4-6 weeks, the minimum level will be