(ii) quantity of materials or the ordering level

Published by admin on

(ii) Similarly, he should enquire whether the minimum quantity of materials or the ordering level has been fixed to avoid shortage of raw materials.

(iii) The system of inviting tenders or quotations by the Purchase Department should be properly investigated.

(iv) The postings in the Stores Ledger should be checked with the help of Materials Received Note, Materials Requisition Note, Materials Returned Note, etc. These documents will also help in checking entries in the Bin Cards.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

(v) He should compare the standard costs of different items in the stores with the purchase price.

(vi) He should ensure that the size of inventory is adequate or excessive in view of the production programme.

(vii) He should vouch the payment of cash made to the suppliers of raw materials with the help of Materials Received Note and ensure that the balance outstanding is correctly shown.

(viii) He should examine that the procedure of purchase, receipt, inspection of materials and of returns of surplus or scraps, etc., is well thought out and is followed in practice.

(ix) Any wastage in storage, transit or for any other reasons should be shown separately. It should be seen whether the causes of such wastage can be controlled or not in future.

(x) He should ensure that there is no possibility of pilferage in the Production Department.

(xi) He should enquire whether the system of receipt of requisitions and issue of materials which involves a lot of paper work creates bottlenecks.

Categories: Articles


I'm Iren!

Would you like to get a custom essay? How about receiving a customized one?

Check it out