SELF EXAMINATION QUESTIONS: 1. What is the prime objective of material control? It is said that in any system of material control there are always two counteracting or opposing factors. What are these and why do these factors arise? 2. What are the principal forms generally required to be used in connection with purchasing and receiving of stores? Briefly describe them and design any one of the forms that are used. 3. Explain the meaning and importance of material control and mention the main requisites of an adequate system of material control. 4. What is a purchase order? To whom should the copies of a purchase order be sent and why? Give a specimen form of purchase order, assuming the particulars to be filled in. 5. Enumerate the advantages and disadvantages of a centralized stores system. 6. What is Re-ordering Level? Explain its relationships with Maximum and Minimum Stock Levels. What are the factors to be considered in fixing Re-ordering Level and Quantity? Under what circumstances would you recommend revision of levels? 7. What is Bin Card? Give a specimen form of the Bin Card and discuss its utility. 8. "The Perpetual Inventory System is an Integral part of material control". Discuss this statement by bringing out briefly the salient features and the advantages of this system. 9. What is Economic Order Quantity? How is it calculated? 10. What are the main factors which you would consider before selecting a method of pricing material issues? 11. What is meant by Bill of Materials? When will you recommend drawal of stores under Bill of Materials as opposed to individual requisition? 12. What are the stores that normally come under "Packing Materials"? What are the major classifications of packing expenses and how they are treated in cost? 66 COST ACCOUNTING