These are the following important five merits of inventory management.
The equipments which are used for the material handling purposes are known as material handling equipments.
The basic material handling principles remain same for all types of organization. But its practices differs from industry to industry which are the following:
Material handling is concerned with the handling of materials from the source or raw materials to the place of production.
In a manufacturing concern the product are received, stored to the production departments, moved from machine to machine and processing form dept.
Elimination of unnecessary material handling: Necessary movement and material handling should be avoided to increase the out put and lowering the cost of production.
The List of Five Material Handling Equipments It’s Meaning and Utility. (Cost Accounting).
Both in manufacturing and non-manufacturing concerns selling function is involved besides manufacturing or purchase of goods.
Accounts and cost Department Expenses: In small concerns administration overheads include the expenses of accounts and cost department also.
The Main Distinctions Between The Allocation and Apportionment Are:
The determination of a suitable basis is of primary importance and the following principles are useful guides to a cost accountant:
The Basic Requirement of A System of Codification of Overhead Expenses Are:
Accounting treatment of under or over absorption: Under or over-absorption of overheads may be treated in one or more of the following methods:
Over or under absorption of overheads meaning: Overhead expenses are usually applied to production on the basis of predetermined rates.
Meaning of absorption: Absorption refers to the charging of overhead expenses to the ultimate cost unit.
The Advantages of Machine Hour Rate in Cost Accounting.