CONFIDENTIAL AC/DEC2021/ACC116 PART A IDENTIFY THE FOLLOWING AS TRUE OR FALSE. STATE ONLY ONE ANSWER FOR EACH QUESTION. 1. Work in progress or semi-finished goods include those basic ingredients that are incorporated into the production of a product, such as flour, sugar, and raisins used in making cakes. 2. Materials can be classified as direct material only. 3. Direct material means material which cannot be easily identified and related with a particular product, job, and process. 4. Material control basically aims at efficiency in storing material/ inventory only. 5. Material requisition form will be prepared by store department. 6. Stores Ledger is a quantitative record of receipts, issues and closing balance of items of stores. 7. The objective of calculating maximum stock level is to avoid shortage of material. 8. The calculation of economic order quantity (EOQ) is to identify the most desirable quantity to be ordered is at the minimum of the ordering costs only. 9. Stock discrepancy requires counting and valuing selected items of inventory on a rotating basis. 10. The first in first out method is defines as an actual stock in a warehouse does not match the recorded inventory stock count (Total: 10 marks)