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QUESTION BANK -MATERIAL AND LABOUR COST

  1 What is Direct material cost?   Direct material cost is the cost of materials that are directly used in the production of a product or completion of a job and can be conveniently identified and measured with that particular product or job. Examples:Wood, Cloth etc.   2 What is material control?   Material control is the systematic procedure of planning, purchasing, receiving, storing and issuing materials in the required quantity and quality, at the right time and at the minimum possible cost. 3 Why is material control Important?      Prevents wastage: Proper control reduces loss due to damage, deterioration, pilferage and unnecessary consumption.    Reduces material cost: Effective purchasing and optimum stock levels help reduce the cost of materials and storage. 4 ...
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Material Cost Question Bank Short Answer

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  MATERIAL CONTROL QUESTION BANK (PREVIOUS YEAR QUESTION PAPER) SHORT ANSWER QUESTION AND ANSWER     1 What is the difference between direct material and indirect material?   Direct Material Raw materials those are directly traceable to the finished product. Wood used to make furniture Fabric used in clothing manufacturing Tires in automobile production Indirect Material  Materials used in the production process, but cannot be directly traced to a specific product or their cost is too insignificant to track individually. Example: o     Glue used in furniture making o     Lubricants for machinery o     Cleaning supplies for production equipment 2 What are the two aspects of material control?   The two main aspect...
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