Book Mark Book Mark delicious
Material Control Homework Help, Tutoring
Home > Accounting > Cost Accounting > Types of Cost > Materials costing > Material Control
Tutors on NetTutors on Net
Control on Purchase of Material, Budget preparation Assignment Help, Tutor Help
Material Control Assignment / Homework Help
Material Control

     If the elements of cost can be properly controlled then only the objectives of costing can be fulfilled. In many cases, material cost consuming a major part of total cost of production is the most important cost. Therefore, the importance of cost control in this sphere is totally unquestionable. Proper control must be exercised on

  1. purchase of material, &

  2.  stores function i.e. receipts, holding & issues, so that the material cost can be controlled.

Control on Purchase of Material:

     The most important part of material control is the control on purchase of material. In small concerns, usually the proprietor or his manager makes the purchases where as separate purchase department is there in any big concern. Depending upon the size of the organization, the number of workers & executives who shall constitute a purchase department is decided. Normally, the purchase manager or purchase officer is the chief of the purchase department, who is responsible for all the purchases. Upon the efficiency of the purchase department depends the success of any organization, particularly, when the market is competitive. Thus a chief of a purchase department must possess the following qualifications so that he can discharge his duties efficiently:

  1. Technical knowledge of the organization.

  2. Knowledge, with reference to the sources, market price, market trend etc, about the items of materials that may be required by the organization.

  3. Regarding restriction on import or export of the materials that may required by the organization, up-to-date knowledge of the government policy.

  4. Knowledge about the deed of purchase, procedure regarding carrying the goods by road, railway or air, procedure regarding import.

  5. Knowledge about insurance.

  6. Knowledge about the nature of supply of materials.

  7. Power to understand the financial position of the prospective supplier.

  8. Knowledge so that he can work out the economic order quantity.

Besides the above, as any other chief, the chief of the purchase department, must be honest & sincere, should be a man of high integrity, must be able to efficiently manage his staff, & must have the knowledge of the policy of the organization as well as its financial resources.

The purchase manager has to perform the under mentioned jobs:

  1. Budget preparation for the purchase department.

  2. Fixation of the grades of materials.

  3. Preparation of a list of approved suppliers at agreed price on long term basis.

  4. Helping the engineering department for the development of standards for materials.

  5. Preparation of manual of sources of supply.

  6. Receiving of purchase requisition, calling tenders & selection of suppliers wherever necessary, placement of formal orders & making follow-up process.

  7. Materials received are to be checked with reference to quantity ordered & quality as per the store-keeper’s note.

  8. Arrangement needs to be made for return of materials received in excess or materials which have not been supplied in accordance with specification.

  9. When excess materials or materials varying from specification are accepted, settlement is required to be made with the suppliers.

  10. Invoices are needed to be checked & send with advice for payment to the accounts department.

  11. In order to take the best advantage on purchase, market research to be done.

Online Live Tutor Control on Purchase of Material, Budget preparation:

     We have the best tutors in Economics in the industry. Our tutors can break down a complex Control on Purchase of Material, Budget preparation problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Control on Purchase of Material, Budget preparation concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Control on Purchase of Material, Budget preparation tutoring and experience the quality yourself.

Online Material Control Help:

    If you are stuck with an Material Control Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Material Control help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Material Control Homework Help. Please do send us the Material Control problems on which you need help and we will forward then to our tutors for review.