Material Cost

ABC Analysis for Inventory Management

Inventory Classification Systems (ABC, FSN, VED, HML)

Inventory Control Ratios (Input-Output Ratio and Inventory Turnover Ratio)

Inventory Control — Concepts, EOQ, and Stock Levels

Just-In-Time (JIT) Inventory Management

Material Cost Control — Importance, Requirements, and Elements

Material Identification, Monitoring, and Consumption Entries in Financial Accounts

Material Issue Procedure (MRN, Transfer Note, Return Note)

Material Storage and Records — Bin Cards, Stock Control Cards, Stores Ledger

Materials Procurement Procedure — BOM, MRN, Purchase Order, RFP/NIT, GRN

Methods of Pricing Material Issues — Average Price Methods (Simple Average, Weighted Average)

Methods of Pricing Material Issues — Cost-Based Methods (Specific Price, FIFO, LIFO, Base Stock)

Methods of Pricing Material Issues — Market Price and Notional Price Methods

Physical Control of Inventory (Two-Bin System, Budgets, Perpetual Inventory, Continuous Stock Verification)

Treatment of Items Associated with Purchase of Material

Treatment of Material Losses — Waste, Scrap, Spoilage, Defectives, Obsolescence

Valuation of Returns and Shortages