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CA Intermediate · Cost and Management Accounting · Material Cost

Which of the following best describes the 'Bin Card' maintained in a stores department?

A bin card is a quantity-only record maintained by the storekeeper for each material, showing receipts, issues and the running balance. Rupee values are not recorded on it; they appear in the stores ledger maintained by the costing department.

  1. AA record of quantities received, issued and balance of a single material, kept by the storekeeper without money valuesCorrect
  2. BA ledger of material values maintained by the cost office showing receipts, issues and rupee balance
  3. CA written request from a production department asking the purchase department to buy materials
  4. DA document recording the return of surplus materials from the shop floor to the supplier

Explanation

A bin card is kept by the storekeeper and records only quantities of receipts, issues and balance for each material. Money values are recorded in the stores ledger kept by the cost office, which is why the second option describes a different record.

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