The Individual Material Management Policy. (Cost Accounting)
Material management does not only cover management of material policy. It is also related to other activities such as inventory control, material planning, executing the policy etc. Material management is closely related to the purchase budget. Material management is essential:
- To maximize the production.
- Reduction of the cost of production.
- Maximization of probability.
- Minimizing investment in capital.
- Improving capital turnover ratio.
Thus individual material management is effective for the organisation and it fails.