Skip to content

CA Intermediate · Cost and Management Accounting · Material Cost

Which of the following is the correct statement about a Bin Card maintained in a stores department?

A Bin Card records only quantities of receipts, issues and balance of each material and is maintained by the storekeeper. Values are shown in the Stores Ledger kept by the cost department, which is why the option claiming quantity and value is wrong.

  1. AIt records only the quantity of receipts, issues and balance of a material, and not valuesCorrect
  2. BIt records receipts, issues and balance in both quantity and value
  3. CIt is maintained by the cost accounts department
  4. DIt is prepared only for finished goods lying in the warehouse

Explanation

A Bin Card is kept by the storekeeper and shows physical quantities of receipts, issues and balance for each item. Values are recorded in the Stores Ledger kept by the costing department, so the option showing both quantity and value describes the Stores Ledger instead.

Did you get it right without looking?

One question tells you little. A timed set on Material Cost shows your real accuracy, how long you take and where you lose marks.

Practise Material CostFree diagnostic mock

More Material Cost questions