Archive | Materials

Documents Required for Purchasing Stores Routine | Cost Accounting

The normal process of purchasing, storing, control and issue of materials consists of the following documents:- 1. Bill of Materials 2. Purchase Requisition 3. Purchase Order 4. Material Inspection Note 5. Goods Received Note (GRN) 5. Goods Received Note (GRN) 6. Stores Requisition Note 7. Material Transfer Note 8. Material Return Note 9. Bin Card […]

Store Keeping: Importance, Functions and Organization

In this article we will discuss about Store Keeping:- 1. Importance of Store-Keeping 2. Functions of a Store-keeper 3. Organisation of Stores 4. Store Layout 5. Centralised Stores. Contents: Importance of Store-Keeping Functions of a Store-keeper Organisation of Stores Store Layout Centralised Stores 1. Importance of Store-Keeping: The cost of materials is one of the […]

Purchasing of Materials |Cost Accounting

After reading this article you will learn about: 1. Introduction on Purchasing of Materials 2. Centralised and Decentralised Purchase 3. Purchase Routine 4. Purchase Requisition 5. Specification of Materials or Bill of Material 6. Time of Purchase 7. Purchase Quantity 8. Purchase Order 9. Purchase Procedures and Others. Introduction on Purchasing of Materials: In a […]

Top 3 Types of Inventory System | Cost Accountancy

The types are: 1. Perpetual Inventory System 2. Continuous Physical Stock Taking Inventory System. 3. Periodic Stock Verification. Inventory System: Type # 1. Perpetual Inventory System: Definition: In the words of Wheldon: “Perpetual Inventory System may be defined as a method of recording store balances after every receipt and issue, to facilitate regular checking and […]

Top 2 Stock Records Used in Stock Control | Cost Accountancy

The following points highlight the top two stock records used in stock control. The records are: 1. Bin Cards 2. Store Ledger Card. Stock Control: Stock Record # 1. Bin Cards: Meaning of Bin Cards: In a store, materials are kept in appropriate bins, drawers or other receptacles; some are stacked while other racked. For […]

Treatment of Items in Material Pricing | Cost Accountancy

The treatments are: 1. Pricing of Materials Returned to Supplier 2. Pricing of Materials Returned from Production Department 3. Transfer of Materials from One Job to Another 4. Treatment of Material and Production Losses 5. Scrap 6. Spoilage 7. Defective Work/Rejects. Treatment of Items in Material Pricing: Pricing of Materials Returned to Supplier Pricing of […]

Material Pricing: Objectives, Problems and Adjustments

In this article we will discuss about Material Pricing:- 1. Objectives of Material Pricing 2. Problems of Material Pricing 3. Features 4. Determination. Objectives of Material Pricing: There are two main objectives of material pricing: (a) To charge the cost of materials issued to production on a realistic and consistent basis. (b) To provide a […]

Perpetual Inventory System | Cost Accountancy

In this article we will discuss about Advantages and Disadvantages of Perpetual Inventory System. Advantages of Perpetual Inventory System: The following advantages can be derived from Perpetual Inventory System: (i) The long and costly work of a stock-taking count can be avoided. (ii) It does not become necessary to stop production at the time of […]

ABC Analysis of Inventory Control | Cost Accountancy

In this article we will discuss about the BC Analysis of Inventory Control:- 1. Meaning of ABC Analysis 2. Advantages of the ABC Analysis 3. Limitations. Meaning of ABC Analysis: In case of a big manufacturing unit which uses a large number of items for production purpose, it becomes difficult to comprehend such enormous number […]

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