material: issue, control and valuation

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material: issue,control and valuation material: issue,control and valuation meaning of inventory inventory means a shedule of items held at particular point of time. levels of material control quality control financial control objectives of material control availability of material. minimum investments in material. suitable price. to avoid spoilage of material. proper issue of material. accounting of material. checking of material. valuation of stock. control essentials of material essentials are centra- -lised perpetual inventory system classifi- -cation & codifica- -tion main techniques of inventory control determination of stock levels. economic oprder quantity (eoq) ved analysis. material turnover ratio. abc analysis. perpetual inventory system. simplification and standardisation. classification and codification. a) determaination of stock levels stock levels maximum stock level minimum stock level danger level average stock level reordering level a) briefing of all above stock levels 1) reordering level: reordering level: minimum level + consumption during the time required to get fresh …

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) a.b.c analysis of material control: abc stands for always better control system. in this technique basically important material is controlled keenly and unimportant material is left out. advantages of abc analysis: reduction in purchase cost proper control best utilisation of resources minimum investment reduction in control cost e) perpetual inventory system it is a system of records maintained by the controlling deptt.,which reflects the physical movement of stocks and their current balance. in this bincard and stores ledger are maintained which show goods received,issued. f) ved analysis: ved stands for vital,essential and desirable.ved analysis to have control of spare parts.in abc analysis only prices of materials are considerd and not their requirement. simplification and standardisation: simplification and standardisation are the important techniques to control the size of inventory so that size of inventory,investment and cost of keeping the materials can be reduced. cassification and codification: classification and codification of …

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stored.a bincard is usually kept in bin.it provides quantitative record of reciepts,issues & balances of stock. it is maintained by store keeper. continued… stores ledger: this ledger is kept in costing deptt. this ledber provides the information for pricing if materials issued and the money value at any time of each item of stores. stores deptt. the location of stores deptt. should be carefully planned and it should be near to the receiving deptt. in order to maximise the transportation costs. issue of materials: materials are received and kept in store carefully and finally the store kepeer issues them whenever those are required for production deptt.,materials should be issued against proper authorisation only.the objective of material issue control is to ensure proper utilisation of materials. material abstract an analysis of various material requisitions,material returned notes and material transfer notes should be made.a material abstract is prepared daily,weekly,monthly to show net …

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material: issue,control and valuation material: issue,control and valuation meaning of inventory inventory means a shedule of items held at particular point of time. levels of material control quality control financial control objectives of material control availability of material. minimum investments in material. suitable price. to avoid spoilage of material. proper issue of material. accounting of material. checking of material. valuation of stock. control essentials of material essentials are centra- -lised perpetual inventory system classifi- -cation & codifica- -tion main techniques of inventory control determination of stock levels. economic oprder quantity (eoq) ved analysis. material turnover ratio. abc analysis. perpetual inventory system. simplification and standardisation. clas...

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