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📚 Learn › Paper 4 — Cost & Management Accounting › Chapter

Material Costs

Inventory control techniques and material valuation methods — EOQ, ABC analysis, stock levels, perpetual inventory, store ledger and pricing of issues. Expect 8–10 marks per attempt.

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6 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare Act text for reference.
⚡ Start lesson 1 →

All lessons

1
Economic Order Quantity (EOQ)
EOQ formula explained for CA Inter CMA — minimize inventory costs with worked examples, common exam mistakes, and carrying cost % conversion
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2
ABC Analysis & Selective Inventory Control
ABC Analysis in Cost Accounting: how CA Inter students should classify inventory into A, B, C categories by value for selective control — wi
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3
Inventory Levels (Re-order, Min, Max, Danger)
Master inventory stock levels for CA Inter CMA: formulas for Reorder, Minimum, Maximum, Average & Danger Level with solved examples for May
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4
Stores Ledger, Bin Card & Perpetual Inventory
Bin Card vs Stores Ledger for CA Inter: who maintains them, what they record, FIFO/Weighted Average worked examples, and reconciliation — ex
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5
Pricing of Material Issues (FIFO, LIFO, WAVCO)
Pricing of material issues for CA Inter: FIFO, LIFO, WAP explained with solved numericals, exam tips, and common mistakes to avoid.
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6
Material Losses (Waste, Scrap, Spoilage, Defectives)
CA Inter CMA: Normal vs Abnormal Material Loss explained simply — treatment in cost accounts, scrap deduction, and exam-ready worked example
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