Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

What should be put into consideration in order for the system to be efficient.

What should be put into consideration in order for the system to be efficient.

Answers

Martin
- Materials should be of the desired quality and specifications to avoid returns and reduce
on wastage in the production process.

- Stock levels should be monitored. Materials should be ordered when authorized or
required.

- Supplies should be efficient and effective. They should minimize lead-time and not
overprice.

- Materials should be appropriately inspected before they are stored. This should be
done against purchase order by knowledgeable personnel.

- Materials should be protected from physical deterioration and theft.

- There should be periodic views to check that all the quantities bought are accounted
for.

- A simple method of coding all stocks of materials should be identified and properly
classified before issue.

- There should be proper documentation at each stage from purchase requisition, order
receipt up to when goods are issued.

- Materials issues should be properly allocated/charged to the relevant cost units for
direct materials and to the appropriate cost centres for indirect costs.
marto answered the question on February 26, 2019 at 09:52

Answer Attachments

Next: Give the possible causes of discrepancies revealed by physical stock counts include:

Previous: What are some of the various risks that international marketers face With their business firm if their product and activities are political vulnerable

View more CPA Cost Accounting Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions