MA9902C00 Study Guide - Final Guide: Perpetual Inventory, Lead Time, Warehouse
Document Summary
Material control aims at eliminating and minimizing all kinds of wastes and losses while the materials are being purchased, stored, handled, issued, or consumed. Several techniques are used at planning, procuring, and holding the stage of material which help in exercising and effecting material cost control. Material control is the process of systematically controlling materials over the stages of procurement, storage, and usage to help maintain the regular and uninterrupted flow of the materials in the production pipeline. No system of costing is complete without an effective material control system. Material control is a system that ensures the provision of the required quantity of materials of the required quality at the required time with the minimum capital investment. Materials are all the commodities consumed in the production department to produce items either directly or indirectly. Inventory is a common term used for raw materials, components, work-in-progress, and finished goods stocked in the store.
