The material requirements of production are issued on the basis of material requisitions. The output is obtained along with wastage, scrap, spoilages and defectives. The accurate cost of output can be computed after taking the losses into account. Losses in the form of waste, scraps, spoilage and defectives are inherent and inevitable with any manufacturing activity. These losses can be [...]
Ascertainment of accurate cost is one of the main objectives of cost accounting. For a manufacturing company material consumption and material cost are vital aspects. Ascertainment of accurate cost depends on correct valuation of material used in the product. The material cost consists of invoice price plus freight, carriage, cartage, insurance, taxes, stores costs, etc. Materials are issued to different [...]
Ascertainment of accurate cost is one of the main objectives of cost accounting. For a manufacturing company material consumption and material cost are vital aspects. Ascertainment of accurate cost depends on correct valuation of material used in the product. The material cost consists of invoice price plus freight, carriage, cartage, insurance, taxes, stores costs, etc. Materials are issued to different [...]