The material cost chapter delves into the fundamental concept of material costs within the realm of production and manufacturing. Material costs represent a significant portion of total production costs for many businesses, making it essential for managers to understand how to effectively manage and control these expenses.
This document discusses the key aspects of materials management. It covers the scope of materials management, which includes all material costs, supply, and utilization. An integrated materials management approach coordinates the functions of planning, purchasing, storage, inventory control, and other related activities. The goals are better accountability, coordination across functions, improved performance and effectiveness, and adaptability to automated systems. Some key functions of materials management include materials planning and control, purchasing, stores management, inventory control, standardization, simplification, and value analysis.
1. Production management involves planning, organizing, directing, and controlling activities related to the production of goods and services.
2. The objectives of production management are to produce the right quality and quantity of goods or services, at the predetermined time and pre-established cost.
3. The key types of production systems are make-to-stock, make-to-order, and assemble-to-order. Make-to-stock involves keeping finished goods in inventory, make-to-order starts production after receiving a specific customer order, and assemble-to-order produces standard component parts and assembles the final product per a customer's order.
1. Production management involves planning, organizing, directing, and controlling activities related to the production of goods and services.
2. The objectives of production management are to produce the right quality and quantity of goods or services, at the predetermined time and established cost.
3. Production management is related to other functional areas like marketing, finance, personnel, materials management, and maintenance to optimize production.
Production management involves planning, organizing, and controlling activities related to converting raw materials into finished goods. It includes functions like product selection, process planning, facility location, capacity planning, production planning and control, inventory control, quality control, and maintenance. The key aspects of production management are selecting the right production process, maintaining optimal inventory levels, and efficiently planning production activities to meet demand while minimizing costs.
This document discusses the importance of developing clear specifications in the procurement process. It outlines several key points:
1. Specifications form the basis for communicating requirements to both internal departments and external suppliers. They establish quality and performance standards.
2. Developing specifications requires input from multiple functions to balance goals around performance, cost, and supply availability.
3. Specifications can take many forms from simple to complex, and often use a combination of methods. Care must be taken to ensure specifications allow for competition and are not overly limiting.
4. Both internal departments and external suppliers should be involved early in the specification development process to help ensure requirements are clearly defined and procurable.
Quality standards are documents that provide requirements and specifications to ensure materials, products, processes, and services are fit for their intended purpose. They help organizations satisfy customer needs, ensure safety, meet regulations and environmental objectives. Standard operating procedures describe routine activities and should be completed consistently to maintain safety and efficiency. They reduce errors, ensure consistency, and improve communication. When receiving materials, one should check for completeness, condition and compliance with purchase details to properly identify any faults. Occupational health and safety addresses workplace hazards from chemicals, physical risks, biology and ergonomics to protect employee well-being.
The document discusses quality standards for received materials. It provides learning competencies for assessing quality, including obtaining work instructions, checking materials against specifications, identifying faulty materials, and reporting defects. Quality standards ensure materials are fit for purpose by providing requirements and guidelines. When selecting materials for a project, key considerations are quality, reliability, suitability for the intended use, and cost. Any faulty or incomplete materials received should be reported to suppliers for replacement.
Purchasing mangement - Puchasing Process - Make Or Buy Decisions - Supplier S...FaHaD .H. NooR
Purchasing department in any organization assist with the identification, selection and acquisition of required materials and services.
Accomplish this as economically as possible, within acceptable standards of quality and service.
“Purchasing profession can be defined as the act of obtaining merchandise; equipment; raw materials; services; or maintenance, repair and operating (MRO) supplies in exchange for money or its equivalent”.
This document discusses the key aspects of materials management. It covers the scope of materials management, which includes all material costs, supply, and utilization. An integrated materials management approach coordinates the functions of planning, purchasing, storage, inventory control, and other related activities. The goals are better accountability, coordination across functions, improved performance and effectiveness, and adaptability to automated systems. Some key functions of materials management include materials planning and control, purchasing, stores management, inventory control, standardization, simplification, and value analysis.
1. Production management involves planning, organizing, directing, and controlling activities related to the production of goods and services.
2. The objectives of production management are to produce the right quality and quantity of goods or services, at the predetermined time and pre-established cost.
3. The key types of production systems are make-to-stock, make-to-order, and assemble-to-order. Make-to-stock involves keeping finished goods in inventory, make-to-order starts production after receiving a specific customer order, and assemble-to-order produces standard component parts and assembles the final product per a customer's order.
1. Production management involves planning, organizing, directing, and controlling activities related to the production of goods and services.
2. The objectives of production management are to produce the right quality and quantity of goods or services, at the predetermined time and established cost.
3. Production management is related to other functional areas like marketing, finance, personnel, materials management, and maintenance to optimize production.
Production management involves planning, organizing, and controlling activities related to converting raw materials into finished goods. It includes functions like product selection, process planning, facility location, capacity planning, production planning and control, inventory control, quality control, and maintenance. The key aspects of production management are selecting the right production process, maintaining optimal inventory levels, and efficiently planning production activities to meet demand while minimizing costs.
This document discusses the importance of developing clear specifications in the procurement process. It outlines several key points:
1. Specifications form the basis for communicating requirements to both internal departments and external suppliers. They establish quality and performance standards.
2. Developing specifications requires input from multiple functions to balance goals around performance, cost, and supply availability.
3. Specifications can take many forms from simple to complex, and often use a combination of methods. Care must be taken to ensure specifications allow for competition and are not overly limiting.
4. Both internal departments and external suppliers should be involved early in the specification development process to help ensure requirements are clearly defined and procurable.
Quality standards are documents that provide requirements and specifications to ensure materials, products, processes, and services are fit for their intended purpose. They help organizations satisfy customer needs, ensure safety, meet regulations and environmental objectives. Standard operating procedures describe routine activities and should be completed consistently to maintain safety and efficiency. They reduce errors, ensure consistency, and improve communication. When receiving materials, one should check for completeness, condition and compliance with purchase details to properly identify any faults. Occupational health and safety addresses workplace hazards from chemicals, physical risks, biology and ergonomics to protect employee well-being.
The document discusses quality standards for received materials. It provides learning competencies for assessing quality, including obtaining work instructions, checking materials against specifications, identifying faulty materials, and reporting defects. Quality standards ensure materials are fit for purpose by providing requirements and guidelines. When selecting materials for a project, key considerations are quality, reliability, suitability for the intended use, and cost. Any faulty or incomplete materials received should be reported to suppliers for replacement.
Purchasing mangement - Puchasing Process - Make Or Buy Decisions - Supplier S...FaHaD .H. NooR
Purchasing department in any organization assist with the identification, selection and acquisition of required materials and services.
Accomplish this as economically as possible, within acceptable standards of quality and service.
“Purchasing profession can be defined as the act of obtaining merchandise; equipment; raw materials; services; or maintenance, repair and operating (MRO) supplies in exchange for money or its equivalent”.
The document outlines Daleel Petroleum's stock holding policy. The policy aims to optimize inventory levels by only keeping items in stock that cannot be obtained quickly when needed or are used frequently. It provides criteria for determining which items should be added to inventory based on factors like delivery time, criticality, and demand frequency. A stock decision matrix is presented to help categorize items as stock, time-dependent, or non-stock based on their criticality and demand levels. The policy also details procedures for expense items and returning used materials to stock.
Technical analysis involves examining the technical and engineering feasibility of a project. It aims to ensure all required inputs are available and facilitates optimal formulation in terms of technology, size, location, etc. Technical analysts believe historical stock and market performance can indicate future performance. They make decisions based on patterns of people's behavior rather than intrinsic product value. The document then discusses various technical aspects that must be analyzed for a manufacturing project, including manufacturing processes, appropriate technology, material inputs, product mix, plant capacity, location, machinery/equipment, structures, environmental impacts, project charts/layouts, and implementation schedules. It stresses the need to consider alternative approaches.
The document summarizes the commissioning process for a new building project. It outlines 13 key steps in the commissioning process including scoping meetings, developing commissioning plans and procedures, functional testing, training staff, and compiling a final report. The goals are to facilitate project acceptance, transfer to maintenance staff, and ensure occupant comfort.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements.
This document provides an overview of textile testing. It defines quality and discusses different definitions and aspects of quality control, including testing and inspection. The document then defines textile testing as applying engineering and science to measure properties, characteristics, and conditions affecting textile materials. It lists common reasons for textile testing such as checking raw materials, monitoring production, assessing final products, and product development. Various types of textile testing are covered, including physical, chemical, biological, visual, physiological, and intelligence testing. The document also discusses topics like standardization of testing, sampling methods, types of samples, and measurement in textile testing.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
Material management in construction – a case studyeSAT Journals
Abstract
The objective of the present study is to understand about all the problems occurring in the company because of improper application
of material management. In construction project operation, often there is a project cost variance in terms of the material, equipments,
manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore,
if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking
corrective actions towards the cost variance. Therefore a methodology is used to diagnose and evaluate the procurement process
involved in material management and launch a continuous improvement was developed and applied. A thorough study was carried
out along with study of cases, surveys and interviews to professionals involved in this area. As a result, a methodology for diagnosis
and improvement was proposed and tested in selected projects. The results obtained show that the main problem of procurement is
related to schedule delays and lack of specified quality for the project. To prevent this situation it is often necessary to dedicate
important resources like money, personnel, time, etc. To monitor and control the process. A great potential for improvement was
detected if state of the art technologies such as, electronic mail, electronic data interchange (EDI), and analysis were applied to the
procurement process. These helped to eliminate the root causes for many types of problems that were detected.
Keywords: Material Management, Construction
Material management in construction – a case studyeSAT Journals
Abstract
The objective of the present study is to understand about all the problems occurring in the company because of improper application
of material management. In construction project operation, often there is a project cost variance in terms of the material, equipments,
manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore,
if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking
corrective actions towards the cost variance. Therefore a methodology is used to diagnose and evaluate the procurement process
involved in material management and launch a continuous improvement was developed and applied. A thorough study was carried
out along with study of cases, surveys and interviews to professionals involved in this area. As a result, a methodology for diagnosis
and improvement was proposed and tested in selected projects. The results obtained show that the main problem of procurement is
related to schedule delays and lack of specified quality for the project. To prevent this situation it is often necessary to dedicate
important resources like money, personnel, time, etc. To monitor and control the process. A great potential for improvement was
detected if state of the art technologies such as, electronic mail, electronic data interchange (EDI), and analysis were applied to the
procurement process. These helped to eliminate the root causes for many types of problems that were detected.
This document discusses current good manufacturing practices (cGMP) and industrial management. It begins with an introduction to cGMP and its regulation by the FDA. It then discusses various aspects of cGMP including plant layout, facilities, equipment, production organization, materials management, inventory control, and quality management. The objectives of cGMP are to ensure product quality and consistency in manufacturing. Total quality management aims to meet customer needs and expectations at every stage of production.
Provides a detailed explanation of different aspects of material control. Very useful to undergraduate students of different universities and cost accounting professional students
The document discusses industrial buying behavior and processes. It begins by explaining how industrial buying differs from consumer buying in that it involves the purchase of machinery, materials, and services for organizational use rather than direct consumption. Industrial buying is a complex process that typically involves multiple participants in the buying center, including initiators, users, influencers, and gatekeepers. There are three main types of industrial buying situations: straight rebuy, modified rebuy, and new tasks. The buying process generally involves recognizing needs, specifying requirements, searching for suppliers, analyzing proposals, selecting suppliers, and post-purchase evaluation. Decision making power is shared among a decision-making unit (DMU) comprising various roles within the organization. Key factors that influence
This document provides an overview of production and operations management. It defines operations management as designing and controlling production processes and redesigning business operations. The key objectives of production management are achieving the right quality, quantity, time and cost of goods/services. Operations management is gaining importance due to its application in services and its ability to add value. The difference between production and operations management is that the latter includes both products and services. Productivity measures how resources are used to accomplish goals. Factors like technology, work measurement techniques, and the work environment impact productivity.
IRJET-Improving Effective Material Management by Identifying Common Factors i...IRJET Journal
This document discusses improving effective material management in building construction projects. It identifies common factors that affect material management, such as transportation issues, waste, improper handling, and lack of planning. The study revealed construction materials can account for over 55% of total project costs. Improper material management can increase costs and delay completion. The document outlines the objectives, components, and functions of effective material management. It also discusses factors that increase waste and problems that arise from a lack of material management. Relative important index methods are used to analyze factors affecting material management. The conclusion is that proper material management can improve project output, efficiency and ensure timely completion.
Application of ABC Analysis for Material Management of a Residential BuildingIRJET Journal
This document discusses applying ABC analysis, a material management technique, to a residential building project to minimize material waste. It begins with an introduction to material management, ABC analysis, and the objectives and functions of material management. It then describes estimating project costs, including costs for materials, labor, land, etc. for a case study building project. Materials are tabulated by total cost and classified into A, B, and C categories using ABC analysis. This categorization allows focusing control on the most expensive and critical materials (A items) to efficiently manage materials and reduce costs. In conclusion, ABC analysis can help optimize material usage and flow for construction projects.
Industrial products can be categorized into 5 types:
1. Raw materials which are unprocessed items that will be converted into finished goods.
2. Fabricating materials and parts which become actual components of finished products.
3. Installations which are large capital equipment that support production operations.
4. Accessory equipment which helps production functions but does not become part of finished goods.
5. Operating suppliers which help make production easy like office supplies and maintenance items.
Each type of industrial product has different features around price, lifespan, purchase frequency, and marketing considerations. Raw materials are purchased frequently while installations have long lifespans. Operating suppliers have short lifespans and low prices. Distribution channels, promotions
Industrial products can be categorized into 5 types:
1. Raw materials which are unprocessed items that will be converted into finished goods.
2. Fabricating materials and parts which become actual components of finished products.
3. Installations which are large capital equipment that support production operations.
4. Accessory equipment which helps production functions but does not become part of finished goods.
5. Operating suppliers which help make production easy like office supplies and maintenance items.
Each type of industrial product has different features around price, lifespan, purchase frequency, and marketing considerations. Raw materials are purchased frequently while installations have long lifespans. Operating suppliers have short lifespans and low prices. Distribution channels, branding
Introduction- Meaning and definition- Objectives, Importance and Uses of Cost Accounting, Difference between Cost Accounting and Financial Accounting; Various Elements of Cost and Classification of Cost; Cost object, Cost unit, Cost Centre; Cost reduction and Cost control. Limitations of Cost Accounting.
1. Textile testing involves determining properties, performance, or quality of materials through standardized scientific procedures. It is used for quality control and ensuring products meet specifications.
2. Quality control aims to ensure a product's properties meet specifications by checking materials, monitoring production, and assessing the final product. It helps maintain customer satisfaction and a company's reputation.
3. Many factors can influence quality, including the selection of raw materials, machines used for production and testing, and the people involved in manufacturing and quality control. Standardizing testing procedures helps ensure consistent results.
A cost sheet is a document used in managerial accounting that provides a detailed breakdown of the costs associated with producing a product or providing a service. It is an essential tool for businesses to analyze and manage their costs effectively. The cost sheet typically includes various cost components classified into different categories, helping managers make informed decisions regarding pricing, production processes, and resource allocation.
The overhead cost chapter in a business or accounting context typically deals with expenses that are incurred in the operation of a business but cannot be directly attributed to specific products or services.
Mais conteúdo relacionado
Semelhante a BBA 3rd Semester Cost Accounting: Unit-2Material Cost
The document outlines Daleel Petroleum's stock holding policy. The policy aims to optimize inventory levels by only keeping items in stock that cannot be obtained quickly when needed or are used frequently. It provides criteria for determining which items should be added to inventory based on factors like delivery time, criticality, and demand frequency. A stock decision matrix is presented to help categorize items as stock, time-dependent, or non-stock based on their criticality and demand levels. The policy also details procedures for expense items and returning used materials to stock.
Technical analysis involves examining the technical and engineering feasibility of a project. It aims to ensure all required inputs are available and facilitates optimal formulation in terms of technology, size, location, etc. Technical analysts believe historical stock and market performance can indicate future performance. They make decisions based on patterns of people's behavior rather than intrinsic product value. The document then discusses various technical aspects that must be analyzed for a manufacturing project, including manufacturing processes, appropriate technology, material inputs, product mix, plant capacity, location, machinery/equipment, structures, environmental impacts, project charts/layouts, and implementation schedules. It stresses the need to consider alternative approaches.
The document summarizes the commissioning process for a new building project. It outlines 13 key steps in the commissioning process including scoping meetings, developing commissioning plans and procedures, functional testing, training staff, and compiling a final report. The goals are to facilitate project acceptance, transfer to maintenance staff, and ensure occupant comfort.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements.
This document provides an overview of textile testing. It defines quality and discusses different definitions and aspects of quality control, including testing and inspection. The document then defines textile testing as applying engineering and science to measure properties, characteristics, and conditions affecting textile materials. It lists common reasons for textile testing such as checking raw materials, monitoring production, assessing final products, and product development. Various types of textile testing are covered, including physical, chemical, biological, visual, physiological, and intelligence testing. The document also discusses topics like standardization of testing, sampling methods, types of samples, and measurement in textile testing.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
Material management in construction – a case studyeSAT Journals
Abstract
The objective of the present study is to understand about all the problems occurring in the company because of improper application
of material management. In construction project operation, often there is a project cost variance in terms of the material, equipments,
manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore,
if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking
corrective actions towards the cost variance. Therefore a methodology is used to diagnose and evaluate the procurement process
involved in material management and launch a continuous improvement was developed and applied. A thorough study was carried
out along with study of cases, surveys and interviews to professionals involved in this area. As a result, a methodology for diagnosis
and improvement was proposed and tested in selected projects. The results obtained show that the main problem of procurement is
related to schedule delays and lack of specified quality for the project. To prevent this situation it is often necessary to dedicate
important resources like money, personnel, time, etc. To monitor and control the process. A great potential for improvement was
detected if state of the art technologies such as, electronic mail, electronic data interchange (EDI), and analysis were applied to the
procurement process. These helped to eliminate the root causes for many types of problems that were detected.
Keywords: Material Management, Construction
Material management in construction – a case studyeSAT Journals
Abstract
The objective of the present study is to understand about all the problems occurring in the company because of improper application
of material management. In construction project operation, often there is a project cost variance in terms of the material, equipments,
manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore,
if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking
corrective actions towards the cost variance. Therefore a methodology is used to diagnose and evaluate the procurement process
involved in material management and launch a continuous improvement was developed and applied. A thorough study was carried
out along with study of cases, surveys and interviews to professionals involved in this area. As a result, a methodology for diagnosis
and improvement was proposed and tested in selected projects. The results obtained show that the main problem of procurement is
related to schedule delays and lack of specified quality for the project. To prevent this situation it is often necessary to dedicate
important resources like money, personnel, time, etc. To monitor and control the process. A great potential for improvement was
detected if state of the art technologies such as, electronic mail, electronic data interchange (EDI), and analysis were applied to the
procurement process. These helped to eliminate the root causes for many types of problems that were detected.
This document discusses current good manufacturing practices (cGMP) and industrial management. It begins with an introduction to cGMP and its regulation by the FDA. It then discusses various aspects of cGMP including plant layout, facilities, equipment, production organization, materials management, inventory control, and quality management. The objectives of cGMP are to ensure product quality and consistency in manufacturing. Total quality management aims to meet customer needs and expectations at every stage of production.
Provides a detailed explanation of different aspects of material control. Very useful to undergraduate students of different universities and cost accounting professional students
The document discusses industrial buying behavior and processes. It begins by explaining how industrial buying differs from consumer buying in that it involves the purchase of machinery, materials, and services for organizational use rather than direct consumption. Industrial buying is a complex process that typically involves multiple participants in the buying center, including initiators, users, influencers, and gatekeepers. There are three main types of industrial buying situations: straight rebuy, modified rebuy, and new tasks. The buying process generally involves recognizing needs, specifying requirements, searching for suppliers, analyzing proposals, selecting suppliers, and post-purchase evaluation. Decision making power is shared among a decision-making unit (DMU) comprising various roles within the organization. Key factors that influence
This document provides an overview of production and operations management. It defines operations management as designing and controlling production processes and redesigning business operations. The key objectives of production management are achieving the right quality, quantity, time and cost of goods/services. Operations management is gaining importance due to its application in services and its ability to add value. The difference between production and operations management is that the latter includes both products and services. Productivity measures how resources are used to accomplish goals. Factors like technology, work measurement techniques, and the work environment impact productivity.
IRJET-Improving Effective Material Management by Identifying Common Factors i...IRJET Journal
This document discusses improving effective material management in building construction projects. It identifies common factors that affect material management, such as transportation issues, waste, improper handling, and lack of planning. The study revealed construction materials can account for over 55% of total project costs. Improper material management can increase costs and delay completion. The document outlines the objectives, components, and functions of effective material management. It also discusses factors that increase waste and problems that arise from a lack of material management. Relative important index methods are used to analyze factors affecting material management. The conclusion is that proper material management can improve project output, efficiency and ensure timely completion.
Application of ABC Analysis for Material Management of a Residential BuildingIRJET Journal
This document discusses applying ABC analysis, a material management technique, to a residential building project to minimize material waste. It begins with an introduction to material management, ABC analysis, and the objectives and functions of material management. It then describes estimating project costs, including costs for materials, labor, land, etc. for a case study building project. Materials are tabulated by total cost and classified into A, B, and C categories using ABC analysis. This categorization allows focusing control on the most expensive and critical materials (A items) to efficiently manage materials and reduce costs. In conclusion, ABC analysis can help optimize material usage and flow for construction projects.
Industrial products can be categorized into 5 types:
1. Raw materials which are unprocessed items that will be converted into finished goods.
2. Fabricating materials and parts which become actual components of finished products.
3. Installations which are large capital equipment that support production operations.
4. Accessory equipment which helps production functions but does not become part of finished goods.
5. Operating suppliers which help make production easy like office supplies and maintenance items.
Each type of industrial product has different features around price, lifespan, purchase frequency, and marketing considerations. Raw materials are purchased frequently while installations have long lifespans. Operating suppliers have short lifespans and low prices. Distribution channels, promotions
Industrial products can be categorized into 5 types:
1. Raw materials which are unprocessed items that will be converted into finished goods.
2. Fabricating materials and parts which become actual components of finished products.
3. Installations which are large capital equipment that support production operations.
4. Accessory equipment which helps production functions but does not become part of finished goods.
5. Operating suppliers which help make production easy like office supplies and maintenance items.
Each type of industrial product has different features around price, lifespan, purchase frequency, and marketing considerations. Raw materials are purchased frequently while installations have long lifespans. Operating suppliers have short lifespans and low prices. Distribution channels, branding
Introduction- Meaning and definition- Objectives, Importance and Uses of Cost Accounting, Difference between Cost Accounting and Financial Accounting; Various Elements of Cost and Classification of Cost; Cost object, Cost unit, Cost Centre; Cost reduction and Cost control. Limitations of Cost Accounting.
1. Textile testing involves determining properties, performance, or quality of materials through standardized scientific procedures. It is used for quality control and ensuring products meet specifications.
2. Quality control aims to ensure a product's properties meet specifications by checking materials, monitoring production, and assessing the final product. It helps maintain customer satisfaction and a company's reputation.
3. Many factors can influence quality, including the selection of raw materials, machines used for production and testing, and the people involved in manufacturing and quality control. Standardizing testing procedures helps ensure consistent results.
Semelhante a BBA 3rd Semester Cost Accounting: Unit-2Material Cost (20)
A cost sheet is a document used in managerial accounting that provides a detailed breakdown of the costs associated with producing a product or providing a service. It is an essential tool for businesses to analyze and manage their costs effectively. The cost sheet typically includes various cost components classified into different categories, helping managers make informed decisions regarding pricing, production processes, and resource allocation.
The overhead cost chapter in a business or accounting context typically deals with expenses that are incurred in the operation of a business but cannot be directly attributed to specific products or services.
The overhead cost chapter in a business or accounting context typically deals with expenses that are incurred in the operation of a business but cannot be directly attributed to specific products or services.
A chapter on labor cost typically delves into the intricacies of understanding, calculating, and managing the expenses associated with employing labor within a business or organization.
The document provides an overview of business organization and forms of business. It defines business and discusses key concepts like production, exchange, and profit motive. The main forms of business organization discussed are sole proprietorship, Hindu Undivided Family (HUF), partnership, corporation, and cooperative. Each form is described in 1-2 sentences highlighting their key characteristics and ownership structure. The document also lists common functional areas of business like sales, marketing, finance, and production.
Introduction to Basic Concepts of Finance: Money and its need, Meaning and need for Financial Planning; Life goals and financial goals of an individual; Format of a sample financial plan for a young adult.
This short document presents picture puzzles that contain hidden words for the reader to identify. The reader is challenged to spot six words concealed within the visual images. Solving visual word puzzles requires carefully examining the pictures to find the embedded words.
Introduction to MS Excel, features of MS Excel, Cell reference, Format cells, Data Validation, Protecting
Sheets, Data Analysis in Excel: Sort, Filter, Conditional Formatting, Preparing Charts, Pivot Table, What
if Analysis(Goal Seek, Scenario manager), Financial Functions: NPV, PMT, PV,FV, Rate, IRR,
DB,SLN,SYD.
Logical Functions: IF, AND, OR, Lookup Functions: V Lookup, H Lookup, Mathematical Functions, Text
Functions.
This document provides an overview of database management systems (DBMS). It begins by defining data and information, and explaining how data is organized and stored in databases. It then discusses different database models including hierarchical, network, relational, object-oriented, and semi-structured models. Key concepts like data normalization, integrity constraints, and security protocols in DBMS are also summarized. Examples of database usage for applications like online directories, billing systems, and social networks are provided to illustrate real-world DBMS implementations.
An information system combines software, hardware, and telecommunications networks to collect and process data, especially within an organization. It turns raw data into useful information for decision making. Typical components include hardware, software, databases, and networks. There are different types of information systems, including transaction processing systems (TPS), management information systems (MIS), and decision support systems (DSS). [END SUMMARY]
The document discusses exempted incomes under the Indian Income Tax Act. It begins by explaining the concept of exempted income and that Section 10 of the Income Tax Act lists various types of income that are exempt from taxation. It then provides a table with 90 entries that lists the specific sub-sections under Section 10 and the corresponding types of income that are exempted under each sub-section. The exempted incomes include agricultural income, interest from certain accounts, pensions, allowances for government employees, income of foreign employees in India, capital gains, dividends, and more.
Introduction to IT, Introduction to IS, Difference be IS and IT, Need for Information System, Information Systems in the Enterprise, Impact of Information Technology on Business (Business Data Processing, Intra and Inter Organizational communication using network technology, Business process and Knowledge process outsourcing), Managers and Activities in IS, Importance of Information systems in decision making and strategy building, Information systems and subsystems.
The document discusses the history and evolution of the Internet. It began as a network called ARPANET developed by ARPA (Advanced Research Projects Agency) in the 1960s to enable communication between computers at universities and research labs. The first message was sent in 1969, but data loss was an issue. In 1973, Vint Cerf and Bob Kahn developed TCP/IP, the communication protocol that allowed for reliable data transmission and became the standard, earning them the title of "Fathers of the Internet." The network expanded in the following decades driven by the development of email in 1971 and the World Wide Web in 1991. It transitioned from a closed military/research network to a global system available to the public and businesses, growing
This document provides an overview of the history and legal framework of income tax in India. Some key points:
- Income tax was first introduced in India in 1860 and the current Income Tax Act came into effect in 1962, replacing previous acts from 1886, 1918 and 1922.
- The legal framework includes the Income Tax Act of 1961, the annual Finance Act, Income Tax Rules framed by CBDT, judicial decisions, and CBDT circulars/notifications.
- Key concepts discussed include the difference between previous year (when income is earned) and assessment year (when income is taxed), definitions of person, assessee, deemed assessee, and assessment.
- Principles of taxation discussed are
What Is an Online Social Network? The Difference Between Social Networks and Portals, The Growth of Social Networks and Online Communities, Turning Social Networks into Businesses, Types of Social Networks and Their Business Models, Social Network Features and Technologies, The Future of Social Networks.
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The document discusses electronic payment systems. It begins by explaining how online payments have become more popular with the rise of e-commerce and the COVID pandemic. It then defines electronic payment systems as allowing customers to pay electronically using methods like debit/credit cards, bank transfers, e-wallets, and cryptocurrencies. The document goes on to describe various electronic payment methods like internet banking, card payments, e-cash, mobile wallets, and their benefits, challenges, and risks. It also discusses B2C payments and specific payment tools like credit cards, debit cards, e-wallets, smart cards, and e-checks.
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Mais de Acharya Institute of Graduate Studies (20)
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Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
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This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
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MATERIALS
INTRODUCTION
• Materials are fundamental substances or components
used in manufacturing processes to create a wide range of
products and structures.
• They play a crucial role in various industries, including
automotive, aerospace, construction, electronics, and
more.
• The choice of materials in manufacturing is essential, as
it significantly affects the final product's properties,
performance, and cost.
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Meaning: Material is a substance or mixture of
substances that constitutes an object.
Ex: Glass, chalk, paper, wax and plastic
Types of Inventory:
•Raw Materials: Raw Materials are the base materials used
in the manufacturing process to make the finished goods.
•Work in Process: WIP refers to the direct materials used
in the process which are under unfinished form and require
additional processing to turn them into a finished product.
•Finished Goods: These are the goods ready for
consumption or sales.
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Classification of Materials:
Direct materials:
• Direct material refers to the raw materials that are
directly used in the production process of goods and
services of a company and are an essential component of
the finished goods manufactured.
• Direct Material Costs are reported in the trading account
debit side under the head “cost of goods sold.”
•Example 1: In the case of a computer, it is made up of many parts
like a keyboard, hard disk, motherboard, etc. All these form a part
of the direct materials required to manufacture a computer.
•Example 2: In the case of a textile company, Cotton works as a
raw material to process the same into a finished product like a
cloth, which is then used to make clothes.
•Example 3: In the case of a brick manufacturing company, cement
is the primary direct material required to make the brick used in the
construction of buildings.
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Continue……
Indirect materials:
• Indirect materials, also known as indirect goods or
consumables, are items that are essential for a business's
operations but do not become part of the final product.
• These materials are not directly used in the production of
goods or services but support the overall functioning of
the business.
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1.Safety Equipment: Manufacturing workers require personal protective equipment
(PPE) such as helmets, gloves, safety glasses, and steel-toed boots to ensure their safety
while working on the production floor.
2.Hand Tools: Mechanics and assembly line workers use a variety of hand tools, like
wrenches, screwdrivers, and pliers, to assemble and repair the vehicles.
3.Cleaning Supplies: Manufacturing facilities need cleaning supplies, including mops,
brooms, cleaning chemicals, and trash bags to maintain a clean and safe working
environment.
4.Office Supplies: Administrative personnel in the manufacturing company require office
supplies like pens, paper, computers, and printers to manage the business operations.
5.Maintenance Parts: Replacement parts for machinery, like belts, filters, and bearings,
are crucial for the maintenance of manufacturing equipment to prevent breakdowns and
production disruptions.
6.Lubricants and Oils: These are used to keep machines and equipment properly
lubricated to ensure they function efficiently.
Importance of Materials:
1.Product Quality: The choice of materials significantly impacts the quality
of the final product. The right materials must be selected to ensure the
product meets the required specifications, durability, and performance
standards. Using subpar or inappropriate materials can lead to defects and
product failures.
2.Cost Control: Material costs often account for a significant portion of a
manufacturing company's expenses. Selecting cost-effective materials and
optimizing material usage can help reduce production costs and improve the
company's profitability.
3.Product Innovation: Advances in materials science can drive product
innovation. New materials with improved properties, such as strength,
weight, or thermal resistance, can open up new design possibilities and lead
to the development of more advanced and competitive products.
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Continue…
4. Environmental Sustainability: Sustainable materials choices are
essential in today's manufacturing industry. Using eco-friendly or recycled
materials and implementing efficient recycling processes can reduce a
company's environmental footprint and enhance its reputation.
5. Supply Chain Management: Managing the supply chain for materials is
critical. Ensuring a reliable supply of materials, tracking inventory levels,
and managing lead times are essential for maintaining production schedules
and avoiding production disruptions.
6. Regulatory Compliance: Different industries and regions have specific
regulations governing the use of certain materials. Manufacturing companies
must ensure that their material choices comply with these regulations to
avoid legal issues and maintain a good corporate image.
Continue…
7. Customization and Differentiation: Materials enable customization and
product differentiation. Offering a range of materials or allowing customers
to choose materials for their products can be a competitive advantage,
catering to various needs and preferences.
8. Durability and Longevity: Materials selection can affect the durability
and longevity of products. Choosing materials that resist wear, corrosion, and
other forms of degradation is crucial, especially for products with long
lifespans.
9. Production Efficiency: The availability of appropriate materials and
efficient material handling processes can improve production efficiency. This
includes minimizing material waste and optimizing cutting, shaping, and
assembly methods.
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PURCHASING
• Purchasing is the process of acquiring goods or services
in exchange for money or other forms of payment.
• It involves identifying a need, selecting a supplier or
vendor, negotiating terms and conditions, and
completing a transaction.
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Types of Purchasing:
1.Centralized Purchasing: In centralized purchasing, a single
department or team is responsible for all purchasing activities
within an organization. This approach can help consolidate buying
power, streamline processes, and negotiate better deals with
suppliers.
2.Decentralized Purchasing: Decentralized purchasing involves
various departments or units within an organization making their
own purchasing decisions. This approach is often used in larger
organizations to meet specific departmental needs. While it offers
flexibility, it can also lead to inefficiencies and a lack of centralized
control.
Procedure for Procurement of
Materials
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1.Identifying Requirements: Determining what goods or services
are needed to meet the organization's operational goals.
2.Sourcing Suppliers: Identifying potential suppliers or vendors
who can provide the required products or services.
3.Request for Quotations (RFQ) and Bidding: Sending out
RFQs or requests for bids to suppliers to gather pricing and other
information.
4.Supplier Selection: Evaluating and selecting the most suitable
supplier based on factors such as price, quality, reliability, and
other criteria.
Continue..
5. Negotiating Terms: Negotiating prices, payment terms, delivery
schedules, and other contract terms with the chosen supplier.
6. Purchase Order (PO): Issuing a purchase order to the selected
supplier, which outlines the details of the purchase, including the
quantity, price, and delivery terms.
7. Receiving and Inspection: Receiving the goods or services,
inspecting them to ensure they meet the specifications, and
verifying that the supplier has fulfilled their obligations.
8. Payment: Processing payments to the supplier according to the
agreed-upon terms.
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Documents Involved in Material Accounting
1.Purchase Order (PO): A purchase order is a formal document issued by
the buyer to a supplier to request the purchase of specific materials. It
outlines the quantity, price, delivery terms, and other details of the materials
to be acquired.
2.Goods Received Note (GRN) or Receiving Report: This document is
generated when materials are physically received and inspected. It details the
quantity and condition of the materials received, matching them to the
information in the purchase order.
3.Material Requisition: A material requisition is a document used to request
materials from the storeroom or warehouse for use in production or other
activities. It specifies the type and quantity of materials needed.
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Continue…
4. Material Issue Voucher: When materials are issued from the
storeroom to a specific department or job, a material issue voucher is
used to record the details, including the quantity, date, and purpose of
the issue.
5. Material Return Note: If materials are returned to the storeroom or
warehouse due to overstock, damage, or any other reason, a material
return note is used to document the return.
6. Stock Transfer Note: When materials are transferred from one
location or department to another within the organization, a stock
transfer note is used to record the movement and ensure accurate
tracking of inventory.
Continue…
7. Material Inspection Report: This document is generated after
inspecting incoming materials to verify their quality and conformity to
specifications. It may include details on the inspection process and
results.
8. Material Disposal Record: Materials that are damaged, expired, or
no longer needed may be disposed of. A material disposal record
documents the disposal process, including the quantity and reason for
disposal.
9. Material Valuation Reports: These reports provide information on
the valuation of materials in stock, including their current value based
on the purchase price, market value, or other valuation methods.
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Continue…
10. Material Usage Records: Records of the usage of materials in
production processes or other activities help monitor consumption, track
trends, and plan for replenishment.
11. Inventory Ledger: An inventory ledger is a comprehensive record of all
materials in stock, including their quantity, value, and movement over time.
It is a key document in material accounting.
12. Material Balance Sheet: This document provides a snapshot of the
material inventory levels, including the opening balance, additions, issues,
returns, and closing balance for a specific period.
Material Storage
• Material storage, also known as
inventory storage, refers to the process
of properly storing and managing
materials, goods, or products within an
organization's facilities.
• Effective material storage is essential
for maintaining inventory accuracy,
ensuring product quality, minimizing
damage or loss, and optimizing the use
of space.
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Store Keeper
A storekeeper, also known as a
store clerk or inventory clerk, is
responsible for managing and
maintaining the storage and
inventory of materials, goods,
and supplies within an
organization.
Duties of Store Keeper
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Duties of Store Keeper
1.Receiving Materials: Receive and inspect incoming materials, goods, or
supplies to verify their quantity, quality, and conformity to purchase orders or
delivery notes. This may involve checking for damage and ensuring proper
documentation.
2.Inventory Management: Keep accurate records of inventory levels,
including additions, deductions, and any adjustments. Use inventory
management software or manual systems to track stock levels.
3.Storage and Organization: Store materials in an organized manner,
ensuring that they are placed in appropriate locations and labeled for easy
identification. Utilize shelves, racks, bins, or pallets to optimize storage
space.
Continue…
4. Material Issuance: Issue materials to authorized personnel or departments
based on material requisitions or work orders. Ensure that materials are issued
in the right quantity and that the relevant documentation is completed.
5. Stock Rotation: Implement stock rotation methods, such as "first in, first
out" (FIFO) or "last in, first out" (LIFO), depending on the nature of materials,
to prevent obsolescence and minimize waste.
6. Safety and Security: Maintain a safe and secure storage environment.
Ensure that materials are stored in a manner that minimizes the risk of damage,
theft, or accidents.
7. Record Keeping: Maintain detailed records of material transactions,
receipts, issues, returns, and adjustments. This documentation is crucial for
accurate inventory tracking and auditing.
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Continue…
8. Stocktaking and Audits: Conduct regular physical inventory counts or
stocktaking to verify the accuracy of recorded inventory levels. Address any
discrepancies and conduct periodic audits for inventory control.
9. Reordering: Monitor stock levels and initiate reorders when materials
reach a specified minimum level to avoid stockouts. Create purchase
requisitions or inform procurement departments of material needs.
10 Supplier Communication: Communicate with suppliers regarding
material quality, delivery schedules, and discrepancies in received materials.
Report any issues to the relevant departments.
11. Material Handling: Use appropriate material handling equipment, such
as forklifts or pallet jacks, to move and transport materials safely and
efficiently within the storage area.
Continue…
12. Compliance: Ensure that all activities comply with relevant
regulations, safety standards, and organizational policies.
13. Documentation& Reporting: Provide regular reports on
inventory levels, material usage, and any significant issues to
relevant departments or management.
14. Continuous Improvement: Identify opportunities to improve
inventory management processes, reduce waste, and optimize
storage space utilization.
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Store Ledger
The summary of stock receipts
contains information about the
items received, their quantities,
prices, and values. The summary
of indents contains information
about the items issued, their
quantities, prices, and values.
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Material Issue
Material issue, or stock
checkout, manages the
process of pulling and
releasing stock items from
a storeroom.
Preparation of stores ledger under
1. FIFO
2. LIFO
3. Simple Average Method
4. Weighted average method