Materials constitute a significant part of the manufacturing costs of an organization and therefore it is essential that proper control and accounting procedures be exercised in all aspects of the materials control system in the area of:
- Initial ordering and purchase
- Inspection of materials
- Storage
- Stock control
- Stock valuation of materials issued from stores to production
- Physical stock-taking
In relation to the above 6 integrated areas of material control system, you are required to explain the purposes, procedures & related documentations required so that materials purchased is the most suitable for the intended purpose of usage and cost-effectiveness.