essentials of material control ''acccounting for materials''

To achieve managerial control on material ,there should be :
1.   proper cooperation and co-ordination among various department such as purchasing , receiving , inspection and store .
 2. Centralized purchasing system under expert and trained personnel .
3. Proper classification , codification and standardization of all items in store .
4. Proper use of stander printed form for requisition ,order ,issue ,return and transfer of materials .
5. Proper storage facilities to avoid loss from fire .theft , damages etc.
6. Proper perpetual inventory system that reflects the physical movement of material and their current balance.
7. Proper system of internal check  to ensure the transaction that are automatically checked .  
 

Need for Material Control / objective of Material Control (Accounting for materials)

Material control is needed for the following reason :
A. To purchase the material at the most economical price by considering quality discount without  compromising on their quality .
 B. To minimize the investment in material by  avoiding overstocking of material .
C. To make the desired quality and quality of material available when required for efficient and uninterrupted production .
D. To provide the information of material for the preparation of production plan , policies , purchasing plan .
E . To reduce the losses and wastage by implementing proper handling and controlling system.  

Material control (Accounting for materials)

The  main purpose of cost accounting is to minimize the cost of production .To achieve this objective , proper planing and effective control over material is to be exercised . Materials  control mean a systematic control over purchasing , store and consumption of materials .It is necessary to ensure the supply of right quality and quality of materials at right time & to prevent extra expenses on unnecessary purchase and improper use .It can reduce the losses and wastage of material through efficient purchase of material , their efficient strong ans efficient use or consumption .  

Type of material (Accounting for materials)

direct material and indirect material are the two type of materials  which are explained as follows :
1. Direct material : Material cost which can be easily identified in the finished product and allocated or charge to the product is a direct material cost . direct material generally become a part of the finished product such as leather in shoes , timber in furniture , sugarcane in sugar are the example of  direct material .
2 . Indirect material cost : material cost which cannot be easily identified with individual cost unit is indirect material . Nails used in furniture , thread use in stitching garments are the example of indirect materials . Indirect materials are small & relatively less expensive items , which are not main part of the finished product. Lubricating oil ,  consumable hand tools and store , materials used for repair and maintenance work are also the example of indirect materials .    

Accounting for material (meaning of materials)

material is an important element for manufacturing concern.  It covers the major portion of the finished product and constitutes nearly  06-70 percent of the total production cost . the term material refers to the physical commodities ( raw material , consumable store , maintenance part ) used to make the finished production from their crud in nature and need to be processed further .They consist component , consumable stores , maintenance  material , spare and tools .

objectives of book-keeping

The following are the important objective of book-keeping :
A . To identify financial transaction : book -keeping identifies financial transaction from a large number of business transaction to keep their record .
B . To keep permanent record : It keeps permanent record of financial transaction as and when they arise in a systematic order .
C. To classify transactions : It classical financial transaction into three types - personal , real and nominal and record them accordingly in a permanent book .
D . To prepare statement  : It help to prepare different statement to summarize , present and interpret the financial information contained in the routine record .    

origin and evolution of book-keeping

The origin of book- keeping cannot be exactly traced out .However , it can be said that the book- keeping as old as money . It has been practiced from the ancient period .It is believed  that the beginning of book-keeping system was associated  with the development of business and its inception . In ancient period the himself did conduct the business in a small scale and book keeping was not essential to that extent .The increasing demands and needs of human beings as well as  the practice of currency gradually began to influence the business activities. scientific book - keeping system then commenced in Italy some 500 years  ago . In a.D a person named Luca Pacific published a book entitled ''sum made Arithmetical '', in which he deal f with the modern principle of book -keeping for that first time . In that book -keeping , he included the following provisional about the book - keeping :
A . Memorial that is memorandum book .
B . gestational ,that is journal book .
C . quadrant , that is ledger Account .