Gives examples of Material losses

Material losses include loss of quantity, weight or volume of materials. Some examples of material losses which are incurred from the following: Obsolescence re: change of specification results in certain type of materials become useless Losses during handling like in pilferage, breakage, etc Storage like fading, rusting, warping affect the materials or inventories Loss during … Read more

What do you think should the objectives of an efficient system of storekeeping

Inventories whether they are materials, work-in-progress and finished goods constitutes a large part of cost for an organization. It is therefore important to understand the following major objectives of an efficient system of storekeeping which are as follows:- That not too much inventories is held That not too little inventories is held That loss of … Read more

Explain what is a Cost Statement?

A cost statement or cost sheet or cost card shows the detailed cost of a cost centre or cost unit.Append below is a simple format of a cost statement: Cost Statement or Cost sheet or Cost Card  $ Direct material cost            5,000 Direct labor cost            4,000 Direct expenses            1,000 PRIME COST          … Read more