Control of materials is never easy job. need extensive knowledge

In the management and control of materials costs, why is the knowledge that excessive waste is occurring trends to be of greater value than the income derived from scrap sales?

In some situations labour and Materials costs incurred on spoiled or defective works are treated as Overhead. In other cases the cost of perfecting defective works are charged directly to the job. Which way of treatment is the appropriate do you think?.

Which of the following statements is true in applying the lower of cost or market (LCM) rule to work in process inventory?

(a) This category of inventory is an exception and the rule, here, does not apply.
(b) Costs of completing the inventory are added to costs of disposal and both are reduced from estimated selling price when calculating realizable value.
(c) Market value cannot ordinarily be fixed.
(d) Equivalent production (EP) is multiplied by the SP (selling price).

A client who wishes to include as a part of the cost of raw materials all of the cost of acquiring and handling incoming materials wants to know :

(a) The main product items that may enter into the cost of materials acquisition and handling.
(b) The arguments favouring the inclusion of these product items as a part of raw materials in warehouse.
(c) The arguments against inclusion of these material items as a part of the cost of raw materials in warehouse.

In order to effect an approximate matching of current costs with related sales revenue, the last-in, first-out (LIFO) method of pricing inventories has been developed.

(a) Describe the establishment of and subsequent pricing procedures when LIFO is applied to units of products with a periodic inventory system in use.
(b) Discuss the general advantages and disadvantages claimed for the LIFO method.