What are the merits of scientific material handling in cost accounting?

Material handling is concerned with the handling of materials from the source or raw materials to the place of production. In case manufacturing organization handling of material is very important factor. It is the movement of materials men, or machinery, from the procurement of material till the product reaches to the ultimate consumer. The movement may be horizontal or vertical. Scientific material handling ensure safety and speedy movement of material. It is a basic function which facilitates the movement of materials in and out side the store.

Actual Cost Method - Cost Control - MRP glossary of Production ...

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According to B. K. Bhar “Material handling is the art and science of moving, packing and storing of material in any form.”

American material handling society defines “material handling is the art and science involving movement. Packing and storing of material in any form by means of gravity, manual effort or power activated machinery”.

Advantages of Material Handling:

The following are the merits or advantages of scientific material handling:


Reduction in labor cost:

A proper system of material handling after loading and unloading of material reduces the labor cost.

Reduction in transport cost:


Improved material handling eliminates unnecessary movement of materials which reduces transportation cost.

Less accident:

Due to scientific handling of materials there would be less chances of accident and reduces cost of production.

Reduction of investment in equipments:


An efficient material handling system ensures standardization  of equipments. This results reduction in cost of operation, repair maintenance and storage cost etc.

Better working conditions:

Scientific material handling provides better lay out of the store which results better working condition for the employees. It increases the productivity of the organization.

Job satisfaction:

Worker may be satisfied as the materials handed over scientifically. It leads to less tiring and leads to greater job satisfaction.

Better customer service:

Material handling ensures timely production by reducing cost and providing qualitative product to the ultimate consumers.

Smooth flow of materials:

The materials are quickly transported from one place to the other through the process of scientific material handling.

Increases profit:

Reduction of cost, better working condition, job satisfaction etc. leads to higher productivity and much profit.

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