The term material may be defined as "anything that can be stored, stacked or stockpiled." It refers to all commodities that are consumed in the process of manufacture. Material is classified in direct material and indirect materials. Ni cost accounting system can become effective without proper and efficient control of material. This is so because quite often material is the largest single element of cost and as such an efficient systems of material control leads to a significant economy in the total cost. Material control is as much cash as cash itself and any theft, waste and excessive use of materials are immediate and direct financial losses, where slack methods exist, it is easy for such losses to pass unnoticed.
Materials or inventory control may be defined as "systematic control and regulation of purchase, storage and usage of materials in such a way so as to maintain an even flow of production and at the same time avoiding excessive investment in inventories. Efficient material control cuts out losses and wastes of material that otherwise pass unnoticed. Thus an efficient system of material control should be comprehensive enough to cover purchase systems, storage system, issue to production and determining stock levels for each item of material.
Materials or inventory control may be defined as "systematic control and regulation of purchase, storage and usage of materials in such a way so as to maintain an even flow of production and at the same time avoiding excessive investment in inventories. Efficient material control cuts out losses and wastes of material that otherwise pass unnoticed. Thus an efficient system of material control should be comprehensive enough to cover purchase systems, storage system, issue to production and determining stock levels for each item of material.
