1. What are the major objectives of material control?

The two major objectives of materials control are: physical control or safeguarding the materials and
control of the investment in materials.

2. What factors should management consider in determining the amount of investment in

materials?
3. What is the meaning of order point?
4. What kind of information and data are needed to calculate an order point?
5. Normally, a manufacturer maintains an accounting system which includes a stores ledger and a
general ledger account for Materials. Describe the relationship between the store’s ledger and
the materials ledger.
6. A company may select an inventory costing method from a number of commonly used
procedures. Briefly describe each of the following methods
a. First in, first out
b. Moving Average
7. What different methods that can be used to account for the sales value of the scrap materials?
8. What distinguishes a product as being spoiled or defective?
9. What are the different methods of accounting for spoiled units?
10. What are the different methods of accounting for defective units?