Materials Cost Management and Control
MATERIAL COSTING & CONROL
BY BUKENYA MOSES Lecturer, Makerere University Business School-MUBS.
MSc. Accounting & Finance-Mak BCom-Accounting-Hons, ACCA Level II, Email: mbukenya@mubs.ac.ug or mosesbukenya@yahoo.com Mobile Phone contact: +256772881525
MUBS EMBA MAC by Moses Bukenya
OUTLINE:
Students should be able to understand
1. AIM/purpose/objectives of principles of material Materials cost management. 2. Basic management 3. Procurement cycle 4. Relevant control documents 5. Functions of inventory control 6. Inventory control systems 7. Pricing material issues and valuation of closing stock. 8. References/suggested reading list
MUBS EMBA MAC by Moses Bukenya
Material Cost MGT & Control
A scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination. AIM OF MATERIAL MANAGEMENT is To get 1. The Right quality 2. Right quantity of supplies 3. At the Right time 4. At the Right place 5. For the Right cost
MUBS EMBA MAC by Moses Bukenya
PURPOSE OF MATERIAL MANAGEMENT •To gain economy in purchasing •To satisfy the demand during period of replenishment •To carry reserve stock to avoid stock out •To stabilize fluctuations in consumption •To provide reasonable level of client services
MUBS EMBA MAC by Moses Bukenya
Objectives of material management
Secondary Primary
•Right price •High turnover •Low procurement & storage cost •Continuity of supply •Consistency in quality •Good supplier relations •Development of personnel •Good information system •Forecasting •Inter-departmental harmony •Product improvement •Standardization •Make or buy decision •New materials & products •Favorable reciprocal relationships
MUBS EMBA MAC by Moses Bukenya
Basic principles of material management
1. Effective management & supervision depending on managerial functions of • Planning • Organizing • Staffing • Directing • Controlling • Reporting • Budgeting 2. Sound purchasing methods 3.
BY BUKENYA MOSES Lecturer, Makerere University Business School-MUBS.
MSc. Accounting & Finance-Mak BCom-Accounting-Hons, ACCA Level II, Email: mbukenya@mubs.ac.ug or mosesbukenya@yahoo.com Mobile Phone contact: +256772881525
MUBS EMBA MAC by Moses Bukenya
OUTLINE:
Students should be able to understand
1. AIM/purpose/objectives of principles of material Materials cost management. 2. Basic management 3. Procurement cycle 4. Relevant control documents 5. Functions of inventory control 6. Inventory control systems 7. Pricing material issues and valuation of closing stock. 8. References/suggested reading list
MUBS EMBA MAC by Moses Bukenya
Material Cost MGT & Control
A scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination. AIM OF MATERIAL MANAGEMENT is To get 1. The Right quality 2. Right quantity of supplies 3. At the Right time 4. At the Right place 5. For the Right cost
MUBS EMBA MAC by Moses Bukenya
PURPOSE OF MATERIAL MANAGEMENT •To gain economy in purchasing •To satisfy the demand during period of replenishment •To carry reserve stock to avoid stock out •To stabilize fluctuations in consumption •To provide reasonable level of client services
MUBS EMBA MAC by Moses Bukenya
Objectives of material management
Secondary Primary
•Right price •High turnover •Low procurement & storage cost •Continuity of supply •Consistency in quality •Good supplier relations •Development of personnel •Good information system •Forecasting •Inter-departmental harmony •Product improvement •Standardization •Make or buy decision •New materials & products •Favorable reciprocal relationships
MUBS EMBA MAC by Moses Bukenya
Basic principles of material management
1. Effective management & supervision depending on managerial functions of • Planning • Organizing • Staffing • Directing • Controlling • Reporting • Budgeting 2. Sound purchasing methods 3.