Inventory Management MCQs

Cost of abnormal wastage is

April 29, 2022

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Cost of abnormal wastage is

Q. Cost of abnormal wastage is:

A. Charged to the product cost

B. Charged to the profit & loss account

C. Charged partly to the product and partly profit & loss account

D. Not charged at all.

Answer: Charged to the profit & loss account

Cost of abnormal wastage is

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The average annual consumption of material is 20,000 kg at a price of ₹ 2 per kg. The storage cost is 16% on average inventory and the cost of placing one order is ₹ 50. How much is to be purchased at a time?

Cost of abnormal wastage is

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The annual demand of a certain component bought from the market is 1,000 units. The cost of placing an order is ₹ 60 and the carrying cost per unit is ₹ 3 p.a. The Economic Order Quantity for the item is ?

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