CAF-5 · Chapter 1 · Question 3 of 10
What is the primary purpose of maintaining a "bin card" by the storekeeper?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To record the quantities of items received and issued, while maintaining a running balance.
Explanation
A bin card is maintained for each raw material item by the storekeeper. It only tracks quantities (receipts, issues, and a running balance) to help ensure stock does not fall below the re-order level.
More Inventory Valuation MCQs
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