GK
BUSINESS MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
storage costs such as security, lighting and insurance may be expensive
|
|
|
the business can rent out excess space
|
|
|
Raw materials might be wasted if they can not be stored in the correct place
|
|
|
it encourages the business to keep obsolete stock
|
Detailed explanation-1: -Abstract. MOST raw materials require cool, dry conditions for storage, and should be used in strict rotation according to age. The stock room and methods of storage should be designed to facilitate the observance of hygiene.
Detailed explanation-2: -Without controlled temperature, products become unusable or degrade if they are not stored in the proper conditions. In fact, keeping a consistently cool or cold temperature for raw materials is vital!
Detailed explanation-3: -The place where raw material and/or finished goods are stored is referred to as warehouse or store. Generally, warehouse is structure or building design keeping in mind raw material and finished goods it is going to store.
Detailed explanation-4: -Wastage is that portion of basic raw material, lost in the processing, having no value to be recovered. Wastage is a complete loss. Wastage may occur due to evaporation, breaking the bulk, loading and unloading, leakage, inefficient handling, fire etc. It may be visible or invisible.