Need for Materials Control
Sidra Farid Need for Materials Control: One of the first step in the installation of cost and management accounting system is planning the proper control of materials and supplies from the time…
Issuing and Costing Materials into Production
Shamsa Rafique Issuing and Costing Materials into Production: To control the quantity and cost of materials, supplies, and services requires a systematic and efficient system of purchasing, recording, and storing. Equally necessary…
Invoice Approval and Data Processing
Invoice Approval and Data Processing: By the time materials reach the receiving department, the company unusually will have received the invoice from the vendor. This invoice and a copy of…
Inventory Pricing and Interim Financial Reporting – Inventory Valuation
Companies should generally use the same inventory pricing methods or interim financial reporting and make provisions for write downs to make market at interim dates on the same basis as…
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules–Inventory Valuation
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules--Inventory Valuation The American Institute of Certified Public Accountants (AICPA) moved away from the traditional cost or market, whichever is…
Cost or Market Whichever is Lower–Inventory Valuation
Abida Rehman Cost or Market Whichever is Lower--Inventory Valuation: American costing tradition follows the practice of pricing year-end inventories at cost or market, whichever is lower (lower of cost or market). This…
Cost of Acquiring Materials | Materials Acquisition Cost
Cost of Acquiring Materials | Materials Acquisition Cost: A guiding principle in accounting for the cost of materials is that all costs incurred in entering a unit of materials into…
Correcting Invoices
Correcting Invoices: When the purchases order, receiving report, and invoice are compared, various adjustments may be needed as a result of the circumstances described below: Some of the materials ordered…
First In First Out (FIFO) – Materials and Inventory Costing Method
Sana Ahmed First In First Out (FIFO) - Materials and Inventory Costing Method: Learning Objectives: Define and explain FIFO method. Give an example of FIFO costing method What are advantages and disadvantages…
Electronic Data Processing System (EDP System) for Materials Received and Issued
Electronic Data Processing System (EDP System) for Materials Received and Issued: The preceding description of invoice approval and payment was for a manual operation performed by an accounts payable clerk…