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
Provides a detailed explanation of different aspects of material control. Very useful to undergraduate students of different universities and cost accounting professional students
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
Provides a detailed explanation of different aspects of material control. Very useful to undergraduate students of different universities and cost accounting professional students
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
1.1 identify the type of accounting
1.2 difference between Cost Accounting , Cost Accountancy and Costing
1.3 understand the Management information needs
1.4 identify the objectives of cost accounting
1.5 difference between Cost Accounting Vs. Financial Accounting
1.6 identify the role of cost accountant
Marginal costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution.
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
1.1 identify the type of accounting
1.2 difference between Cost Accounting , Cost Accountancy and Costing
1.3 understand the Management information needs
1.4 identify the objectives of cost accounting
1.5 difference between Cost Accounting Vs. Financial Accounting
1.6 identify the role of cost accountant
Marginal costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution.
Inventory Control and Replacement Analysis Priyanshu
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The slides contains information on Production Management according to the UHS content of Pharmaceutical Marketing and Management. It would be helpful for Pharm.D students to cover their syllabus content.
It contains detailed information on:
Material Management
Planning of Production
Batch Record Maintenance by WHO
Tools of Inventory Control
Good Manufacturing Practices under Drug Act
5P's of Production Management
Objective of Production Management
Rules and Regulations of PM
Elements of Production Management
1.1 Understand the concept of Standard Cost and Standard Costing
1.2 Understand the objectives and utility of Standard Costing
1.3 Compute and analyze various variances.
To understand the basic concepts of marginal cost and marginal costing.
To understand the difference between the Absorption costing and Marginal Costing.
To learn the practical applications of Marginal costing.
To understand Breakeven charts & Limitation
01.Understand the concept of ‘Overheads’.
02.Understand classification, allocation, apportionment and absorption of overheads.
03. Understand the Primary and Secondary Distribution of Overheads.
04. Understand the Traditional & Activity Based Costing methods
05. Identify the value added & non value added activity
1.Distinguish between the direct and indirect labor cost
2. Understand the various facets of labor cost control
3. Understand the concepts like labor turnover, time keeping, time booking and idle and overtime
4. Know the various methods of remuneration including incentive plans
5. Understand the pay roll accounting and disbursement of wages.
1.1 identify the elements of costs
1.2 understand various classification of costs
1.3 identify the cost unit
1.4 identify the cost center
1.5 exercise regarding costs concepts
Chapter 01 INTRODUCTION TO COMPUTER BASED ACCOUNTINGayanthimadhumali
Introduction to Computer Based Accounting.
Difference between manual accounting system and computerised accounting
Advantages and disadvantages of computerised accounting
Accounting Software packages
Types of accounting software files system
Introduction to Computer Based Accounting.
Difference between manual accounting system and computerised accounting
Advantages and disadvantages of computerised accounting
Accounting Software packages
Types of accounting software files system
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
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Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
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In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. 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
3. Materials
Materials
• The term ‘material’ 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.
4. 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
5. 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.
6. Procedures for Purchasing
01.Purchase Requisition
• A form known as ‘Purchase Requisition’ is commonly used as a
format requesting the purchase department to purchase the
required material.
• Normally the purchase requisition is issued by the Stores
Department when the quantity of the concerned material reaches
the minimum level
7. • 02. Select suitable suppliers
After the receipt of purchase requisition, the purchase
department places an order with a supplier, offering to buy
certain material at stated price and terms.
However before issuing the purchase order, quotations may be
invited from various suppliers for arriving at the best deal
• 03. Purchase order
purchase order is issued to the selected supplier. purchase order
is a legal document and it results into a contract between the
company and the supplier.
8. • 04.Receiving the Materials
• The receiving department performs the function of unloading
and unpacking materials which are received by an organization.
• 05. Approval of invoice
• Approval of invoice indicates that goods according to the
purchase order have been received and payments can be made
for the same
• 06. Making the Payment
• After the invoice is approved the payment is made to the
supplier
9. Stores Control
• Material purchased by the purchase department is sent to stores
before it is issued for production.
• A storekeeper is a person who is in charge of the stores
department .The following functions are usually performed by a
storekeeper.
Protecting the material
Avoiding overstocking and under stocking
Keeping proper records of usage, wastages etc.
10. Aspects of Stores Control
01.Stores Layout
• careful designing and arrangement of storerooms is desirable
for savings in cost. The layout should take care of proper
ventilation, lighting, temperature control and easy handling.
• Types of Stores systems/ Layout
Centralized stores: A stores is only one in the company which receives
materials for & issued to all who need them.
Decentralized stores: Stores is that type of stores which receives materials
for & issues them to only one department & not to the whole company.
Decentralized stores may be in many number in the company.
11. Sub Stores: Sub stores are managed by & controlled by the centralized
stores it self.
At the beginning of period the CS issues a fixed quantity of materials to sub
stores. At the end of the period sub stores send a filled requisition form to CS
to maintain the stock to predetermine level.
• 02.Classification and Codification of Materials:
• Materials can be classified according to their types. Codification can be
done for simplification of identification.
• Whatever system of codification is used, it should be ensured that the system
is simple to understand and easy to operate.
• E.g.: TC/BMS/LH01/CHA/252
12. Inventory Control
• One of the important aspects of the overall material
management is the inventory control. It is necessary to avoid the
overstocking as well as under stocking. For ensuring this,
maximum level, minimum level, re-order level are fixed.
• For inventory control, the following methods are used.
I. ABC System
II. Just in Time Inventory
III. Two bin system
IV. Stock level
V. Perpetual Inventory System
13. 01.Perpetual Inventory System
• The main advantage of this system is that it avoids disruptions
in the production caused by periodic stock taking.
Bin Card
• It is the quantitative record of all receipt of materials, issue of
materials and the balance of materials on a particular day. Bin
Card do not record the amount of receipt or issue, it records
only the quantity by store department.
Stock ledger
• Stores ledger is prepared by accounting department ,that ledger
is a record of quantities & values.
14. 02.ABC System
• In this inventory are classified according to the value of usage.
Materials are classified as A, B and C according to their value.
• The high value items should be controlled more carefully while items having
small value though large in numbers can be controlled periodically.
Items in Class % of total items % of total value of
inventory
A 10 % 70%
B 35% 25%
C 55% 5%
15. 03. Just In Time Inventory
• Material purchased from supplier should directly go the
assembly line, i.e. to the production department. There should
not be any need of storing the material.
• The benefits of Just in time system are as follows,
Right quantities are purchased or produced at right time.
Cost effective production
Inventory carrying costs are eliminated totally.
saving in the stores cost.
Losses due to breakage, wastage, pilferage etc. are avoided
16. 04. Two bin system
• The two bin inventory control method is mainly used for small
or low value items. When items in the first bin have finished ,
an order is placed to refill or replace these items.
• The second bin contains enough quantity of the item until the
ordered quantity arrives.
1st Bin
2nd Bin
18. 01.Re-order Level
• This level is fixed for deciding the time of placing an order. If the stock of
materials reaches this level, fresh order is placed
Re-order Level = Maximum consumption * Maximum supply Period
• 02. Maximum Level
• This is the highest level of material beyond which the inventory of material
is not allowed to rise. Obviously this level is fixed with the objective of
avoiding overstocking
• Maximum Level = Re-order Level + Re-order Quantity – [Minimum
Consumption * Minimum supply period]
19. • 03.Minimum Level
• This level is fixed with the objective of avoiding shortage of material. Care is
taken that the stock do not fall below this level.
Minimum Level = Re Ordering Level – [Average consumption * Average
supply period]
04.Average Level
• This level is the average of the maximum and minimum level
Average Level = Maximum Level + Minimum Level
2
20. EOQ (Economic Order Quantity )
• EOQ is the order quantity that minimizes the total holding costs
and ordering costs.
• This concept is based on some assumptions. These assumptions
are as follows.
The concerned material will be available all the time without
any difficulty.
The price of the material will remain constant.
Ordering cost and carrying costs are variable.
Impact of quantity discounts on the prices is negligible.
21. The formula
EOQ = 2*D*Co
CH
Where EOQ = Economic Order Quantity
Co= order cost per order
D = Annual quantity required in units
CH =Stock holding cost per unit per annum
22. Example
• The annual consumption of a part “X” is 8000 units. The
procurement cost per order is $40 and the cost per unit is $0.5.
The storage and carrying cost is 50% of the material unit cost.
Required:
Calculate the EOQ by ,01. Formula Method
02. Tabular Method
24. • No of order = D/Q
= 8000/1600
= 05
• Order Cost = D/Q * Co
=05 * 40
= 200
• Stock holding Cost = ½ * Q * CH
= ½ * 1600 * 0.25
= 200
25. No of
order
No of units in one
order
Ordering
Cost
Holding Cost Total
inventory
cost
1 8000/1 = 8000 1* 40 = 40 ½* 8000*0.25=1000 1040
2 8000/2 =4000 2 * 40 =80 500 580
3 8000/3 = 2667 3 * 40 =120 334 484
4 8000/4 = 2000 4 * 40 =160 250 410
5 8000/5 = 1600 5 * 40 =200 200 400
6 8000/6 = 1334 6 * 40 =240 240 407
Table to calculate EOQ
In EOQ, Co=CH
26. Cost $
Units per order
Ordering cost
Carrying cost
Total cost
100
200
300
800 1600 2000
Minimum cost
EOQ=1600 units
27. Cost $
No of order
Carrying cost
Ordering cost
Total cost
100
200
300
2 4 6
Minimum cost
EOQ=5 order
28. Issuing Control
• Another important aspect of material control is the issue control. Material is
issued to production and utmost care is to be taken while issuing the
material. The first thing is that without authorization material should not be
issued to any department
Pricing of Issues
• Material is issued to production and it is necessary to find out the
consumption value of the material. The various methods of pricing of
issues are,
I. FIFO
II. LIFO
III. WAC
IV. SAP
29. • FIFO: As per this method, material received first is issued first. Thus the
material in stock at the beginning of a period is issued firstly and then the
issues are made according to the dates of purchases made
• LIFO: under this method is that the material which is purchased last is
issued first to the production. Therefore the issue should be charged at the
latest prices
• Simple Average Cost Method Under this method, the issues are
charged at the average price of the material purchased without taking into
consideration the quantities involved in the same
• Weighted Average Method: This method takes into consideration the prices
as well as the quantities of materials purchased. Thus weighted average is
computed after each receipt by dividing the total amount by the total quantity
30. Inventory Turnover
• Inventory turnover ration enables the management to avoid capital
being locked up in undesirable stocks. This ratio indicates the
efficiency or inefficiency with which inventories are maintained.
Inventory turnover ratio = Cost of materials consumed
Cost of average stock held during the period
Stock turnover = Days during the period
Inventory turnover ration
Average opening & closing stock
No.of days for inventory
held