Interview Questions.

Top 100+ Material Cost Control Interview Questions And Answers


Top 100+ Material Cost Control Interview Questions And Answers

Question 1. What Is Material Cost?

Answer :

Material control is a systematic control over purchasing, storing and consumption of substances, so that you can maintain a normal and well timed deliver of substances, on the identical time, averting overstocking.

Question 2. What Do You Understand By Store Keeping?

Answer :

According to Alford and Beatty's store preserving is that factor of fabric manipulate involved with the physical garage of proper's. In other phrases,store retaining pertains to art of keeping raw substances, paintings-in-development and completed items within the shops.

Material value Interview Questions
Question 3. What Is The Necessity And Importance Of Material Control?

Answer :

For knowing proper cost of production, control over substances is vital.
Certain techniques and methods are advanced underneath the gadget of materials control thereby making sure best utilisation of substances.
In order to adopt continuous checking of substances, the necessity of a proper gadget of materials manage can't be not noted.
A nicely controlled gadget of materials manage guarantees the availability of various forms of substances without delay.
Question 4. What Does Inventory Turnover Ratio Indicates?

Answer :

The ratio suggests how quick the inventory is used for manufacturing. Higher the ratio, shorter will be the length of inventory on the manufacturing unit. It is the index of efficiency of fabric control.

Question 5. What Is Maximum Level?

Answer :

Maximum stage is the level above which stock ought to by no means attain. It is also known as most limit's or maximum stock's. The function of maximum degree is essential to avoid useless blocking up of capital in inventories, losses as a consequence of deterioration and obsolescence of materials,greater overheads and temptation to thefts and many others. This level can be decided with the subsequent formula. 

Maximum Stock stage = Reordering degree + Reordering

Raw Material Incharge Interview Questions
Question 6. What Is Industrial Purchasing?

Answer :

The customer is buying to convert cloth into completed product. It includes buying raw materials. Components,elements and consumable shops,spares and equipment,machines and gadget and workplace equipment.

Question 7. What Is The Difference Between Centralized And Decentralized Storage?

Answer :

Centralized storage manner a single shop for the entire business enterprise, while decentralized storage manner independent small shops attached to numerous departments.

Question 8. What Is Minimum Level?

Answer :

It represents the bottom amount of a particular fabric underneath which stock should now not be allowed to fall. This degree need to be maintained at on every occasion in order that production isn't always held up due to scarcity of any cloth.It is that degree of inventories of which a sparkling order ought to be placed to replenish the inventory.

This stage is typically determined through the following method:

Minimum Level = Re-ordering level's

(Normal fee of intake x Normal shipping period)

Question nine. What Are The Functions Of Store Keeping?

Answer :

The capabilities completed by means of the stores department are outlined below:

Issuing purchase requisitions to Purchase Department as and while necessity for materials in stores arises.
Receiving purchased materials from the purchase department and to affirm their first-rate and quantity with the acquisition order.
Storing and keeping materials at proper and convenient places in order that items might be without difficulty placed.
Storing the materials in the sort of way so that you can minimise the occurrence of Source
Question 10. State The Requirements Of A System Of A Material Control?

Answer :

The critical requirements or essentials of ok and pleasant device of fabric manipulate are as follows:

Proper coordination
Competent Purchasing agent
Use of Standard Forms.
Control with the aid of budgeting cloth and Equipment.
Storage Location.
Question 11. Explain Purchasing Process?

Answer :

Purchasing is the formal system of purchasing items and offerings. The purchasing procedure can range from one agency to some other, however there are some commonplace key factors.The method generally begins with a demand or requirements ? This will be for a physical component (stock) or a carrier. A requisition is generated,which details the requirements (in some cases offering a necessities specification) which moves the procurement branch. A request for idea (RFP) or request for citation

Question 12. Name The Four Sections In The Process Of Store Keeping.

Answer :

There are four sections in the method of store keeping viz.

 Receiving phase
 Storage phase
 Accounting segment
 Issue segment.
Material value Interview Questions
Question thirteen. What Is A Material Requisition?

Answer :

A materials requisition form is a source document that the production department makes use of to request materials for production system. The manufacturing manager commonly fills out the substances requisition form and gives you it to the materials or garage department in which all the uncooked substances are stored.

Question 14. What Are The Objectives Of Material Cost?

Answer :

The various objectives of fabric value are as follows:

 To allow uninterrupted production.
 To make certain requisite pleasant of materials.
 To minimise wastage.
 To restore responsibility.
 To offer statistics.
Question 15. What Is Perpetual Inventory System?

Answer :

In business and accounting/accountancy, perpetual inventory or continuous inventory describes structures of trading stock where records on stock quantity and availability is up to date on a non-stop foundation as a characteristic of doing commercial enterprise.

Question sixteen. What Is Periodic Inventory System?

Answer :

Periodic stock is a machine of stock in which updates are made on a periodic basis. This differs from perpetual stock structures, where updates are made as seen in shape. In a periodic stock gadget no attempt is made to hold up-to-date statistics of either the inventory or the value of goods offered.

Question 17. How Is Economic Order Quantity Calculated?

Answer :

 Q = v2AS/I

where; Q stands for amount consistent with order ;

A stands for annual requirements of an item in phrases of rupees

S stands for price of placement of an order in rupees

I stand for inventory wearing fee in step with unit in line with yr in rupees.

Question 18. State The Difference Between Perpetual And Periodic Inventory System?

Answer :

In perpetual stock machine, merchandise stock and value of products offered are updated continuously on every sale and purchase transaction. 

In periodic inventory machine, products inventory and price of goods bought aren't up to date constantly.

Raw Material Incharge Interview Questions
Question 19. Name The Types Of Purchases?

Answer :

Personal Purchases
Mercantile Purchasing
Industrial Purchasing
Institutionalised or authorities purchasing