Question

Scientific inventory control system exercises ________ control.

a) Production

b) Materials

c) Cost

d) Mass​

Answer 1

Answer:

scientific inventory control system exercises cost control.

Answer 2

Option c is the correct option.

Explanation:

• Inventories are a component of the firm’s working capital.
• It is viewed as a source of near all cash.
• The purpose is to achieve efficiencies in areas where costs are involved.
• The scientific inventory control results in the reduction of stocks on the one hand and substantial decline in critical shortages on the other.
• ABC method helps in developing a scientific method of controlling inventories.
• Scientific inventory control system exercises cost control.