Purchasing and Inventory Control in MM Material Management is one of the critical and crucial part of every organization involved in manufacturing process. Bad Management of inventory, purchasing methods has lead to fall of organizations. Total number of Spares varies from organization to organization. An Efficient and Effective Material Management System is important in the purchasing and inventory control for Effective Cost Control in maintenance. Inventory Control OBJECTIVES To minimize the capital blocked up in inventory or in other words maintain optimum level of inventory . To strike a balance between production costs and operating and maintenance costs. To avoid wastages ...
Inventory Control Methods Help businesses account for Ending Inventory and help determine Cost of Goods Sold If Inventory consists of large, identifiable items, it is easy to compute the above. If Inventory consists of lots of items that are not specifically identifiable, such as in a hardware store, it is not very easy to compute the above. Businesses use Inventory Control Methods to help with these computations. Assumptions Because of fluctuations in purchase price of the inventory, businesses must make assumptions about which items have sold and which remain. These Methods are: Specific Identification First In First Out Last In ...
UNIT 5: MANAGEMENT ACCOUNTING › LO 1: Demonstrate an understanding of management accounting systems. 2 UNIT 5: MANAGEMENT ACCOUNTING P 2 Explain different methods used for management accounting report 3 DIFFERENT TYPES OF MANAGMENT ACCOUNTING SYSTEMS A cost accounting system (also called product costing system or costing system) is a framework used by firms to estimate the cost of their products for profitability analysis, inventory valuation and cost control. Estimating the accurate cost of products is critical for profitable operations. 4 DIFFERENT TYPES OF MANAGMENT ACCOUNTING SYSTEMS A firm must know which products are profitable and which ones are not ...
Objectives • Evaluate the receiving process • Explain the use of a product specification reference guide and the buyer’s order form • Describe product inspections, discrepancies, product rejections, and credit memos Objectives (cont’d.) • Summarize the storing process • Define formal and informal issuing • Describe the use of storeroom requisitions and purchase requisitions • Explain the differences between a physical inventory and a perpetual inventory Objectives (cont’d.) • Identify the hardware and software used with computerized inventory systems • Describe the methods used to determine inventory valuation • Apply the use of ingredient rooms ...
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