A:-Cost Elimination
B:-Cost Ascertainment
C:-Cost control

D:-Cost Reduction

Correct Answer:- Option-A

Question35:-Ildentify the INCORRECT statement from the following

(i) Bin card contains quantity and value of materials

(11) FIFO method is better when prices are increasing

(iii) Stores Ledger is an accounting record maintained by the store keeper

A:-Statement | alone is incorrect
B:-Statement II alone is incorrect
C:-Statement III alone is incorrect
D:-Statements III and Ill are incorrect
Correct Answer:- Option-D

Question36:-Which of the following statements are TRUE with regard to purchase of
materials?

(1) Purchase procedure consists of receiving requisition, placing order, receiving
and inspection of materials and making payments to the supplier

(11) GRN is prepared when materials are issued to the production department

(iii) Inspection report is prepared as to validate the quantity and quality of
received materials and the quantity of materials rejected and rteturned

A:-Statements | and II are true
B:-Statements II and Ill are true
C:-Statements | and Ill are true
D:-Statements |, Il and III are true
Correct Answer:- Option-C

Question37:-Which of the following is INCORRECT with respect to the techniques of
inventory control?

(1) JIT aims to keep inventory at the maximum stock level in all times so as to
avoid interruptions

(॥) Imprest system of inventory control involves fixing maximum stock level for
each BIN and replacing the materials consumed to ensure maximum level in the bin
(iii) Selective Inventory Control are made by using ABC analysis and VED analysis

A:-Statement | alone is incorrect
B:-Statement II alone is incorrect
C:-Statement III alone is incorrect
D:-Statements | and II are incorrect
Correct Answer:- Option-A

Question38:-Which of the following statements are TRUE in respect of
determination of EOQ under graphical method?

(i) Ordering Cost will slops downward as the quantity ordered is increased
(ii) Carrying cost will slops upward as the quantity ordered increases