PPT: Material Cost | Cost and Management Accounting for CA Intermediate PDF Download

 Page 1


MATERIALS
Page 2


MATERIALS
Learning Objectives
After studying this topic, you should be able,
• 1. to understand the basic principles of Material Control
• 2. to study the procedures of Purchase, Storing and Issues
• 3. to acquaint with the latest techniques in inventory control
• 4. to understand the pricing of issues
Page 3


MATERIALS
Learning Objectives
After studying this topic, you should be able,
• 1. to understand the basic principles of Material Control
• 2. to study the procedures of Purchase, Storing and Issues
• 3. to acquaint with the latest techniques in inventory control
• 4. to understand the pricing of issues
Materials
Materials
• The term ‘ m ate ria l’ generally used in manufacturing concerns,
refers to raw materials used for production & sub-assemblies
parts.
Stores
• Stores in a company comprises many other items besides raw
materials, such as tools, equipment, maintenance repair items,
factory supplies, components, fixtures. Sometimes, finished
goods and partly finished goods are also included within the
scope of this item.
Page 4


MATERIALS
Learning Objectives
After studying this topic, you should be able,
• 1. to understand the basic principles of Material Control
• 2. to study the procedures of Purchase, Storing and Issues
• 3. to acquaint with the latest techniques in inventory control
• 4. to understand the pricing of issues
Materials
Materials
• The term ‘ m ate ria l’ generally used in manufacturing concerns,
refers to raw materials used for production & sub-assemblies
parts.
Stores
• Stores in a company comprises many other items besides raw
materials, such as tools, equipment, maintenance repair items,
factory supplies, components, fixtures. Sometimes, finished
goods and partly finished goods are also included within the
scope of this item.
Material Control
• Material control basically aims at efficient purchasing of
materials, their efficient storing and efficient use or consumption.
Various aspects of Material Control
1. Purchasing Control
2. Stores Control  
3. Issue Control    
Page 5


MATERIALS
Learning Objectives
After studying this topic, you should be able,
• 1. to understand the basic principles of Material Control
• 2. to study the procedures of Purchase, Storing and Issues
• 3. to acquaint with the latest techniques in inventory control
• 4. to understand the pricing of issues
Materials
Materials
• The term ‘ m ate ria l’ generally used in manufacturing concerns,
refers to raw materials used for production & sub-assemblies
parts.
Stores
• Stores in a company comprises many other items besides raw
materials, such as tools, equipment, maintenance repair items,
factory supplies, components, fixtures. Sometimes, finished
goods and partly finished goods are also included within the
scope of this item.
Material Control
• Material control basically aims at efficient purchasing of
materials, their efficient storing and efficient use or consumption.
Various aspects of Material Control
1. Purchasing Control
2. Stores Control  
3. Issue Control    
Objectives of Materials Control
• Material of desired quality should be available when needed for
efficient and uninterrupted production.
• Material should be purchased only when it is needed and in 
most economic quantities.
• Purchasing of material will be made at the most favorable 
prices under the best possible terms.
• materials are protected against loss by fire, theft, animals
• Issues of materials are authorized properly and are accounted 
for properly.