Bcom 2nd Year materials notes

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Bcom 2nd Year materials notes

Question 1. Write a short comment on the bin form.

Write a short note on Bin card 

The main purpose and duty of a store-keeper is to keep the material properly, maintain, break and prevent it from getting destroyed. The main function of a store-keeper is to place the entry in the ‘Receipt Book’ on the receipt of the material, in the prescribed cupboard, drum, box or rack for each material and its entry in the bin card. . There is a separate bin card for each material, in which the date, quantity and details of the material released ie the quantity, department and date and details of the remaining material are recorded from time to time. Wherever the material is kept, the bin card is hung. Bin card sample is given below 

Bcom 2nd Year materials notes

Question 2. Explain the method of first come first issue of material.

Explain the method First in Frist out Method – FIFO

First come first go 

First in First Out Method– FIFO

As it is clear from its name, under this method, the material which comes first in the store is first issued at its cost price i.e. the order in which the material arrives in the store is released in the same order at their cost price. is done. In this method, it is assumed hypothetically that the items that come in the store on different dates. According to the order of their arrival is different. 

Benefits- (1) This method is simple and practical. (2) The old material is issued first, so there is no fear of spoilage or destruction of the material. (3) The value of the material left over is approximately equal to the current market price. Bcom 2nd Year materials notes

Faults- (1) It is a difficult task to store the materials purchased at different dates according to different values.

(2) The value of material issued for different subtasks on the same date may vary.

(3) The production cost of the goods does not equal the market price due to the issue at the old prices. 

Question 3. Write a short comment on ‘Later come first go’.

Write a short note on Last in First out Method -LIFO

Later come first go method 

(Last in First out Method-LIFO)

Under this method, the material which comes later in the store-house is made on the issue and the material which comes first is released later. Under this also, the material has to be kept separately according to the faults. This method. It is assumed hypothetically that there is only one door in the store house. Therefore, earlier extraction of subsequent material is more appropriate and convenient.

गण (Advantages)-

(1) This method is simple and can be used with ease.

(2) The material is issued at the final cost price and the fair value of the goods produced may be determined. 

Disadvantages –

(1) This method is not practical because no producer can leave the goods previously in the store to rot. Goods that come first are already issued and goods that come later are only released later.

(2) The valuation of the remaining material is quite different from the market value because the material stock remains pre-occupied.

(3) Too much space is required to hold the material according to different values. 

Question 4. What is the ABC method of Wing Control? Under what circumstances is this method used? What are its benefits? 

What is ABC system of inventory control ? Under what circumstances this method can be used ? What are its advantages ? 

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Control by Exception Method of Inventory 

ABC control is also called product control. By this analysis, the intention is to find the comparative cost of different types of materials based on the amount of capital appropriated, and to pay more attention to control of more valuable materials and to keep out of control the less valuable materials as exceptions. . In the modern era, there is a great difference in the cost of materials in manufacturing. Therefore, large institutions focus more on expensive items while cheaper. Not on materials. Therefore, an analytical technique is needed whereby different types of materials can be divided on the basis of the cost involved and strict control of the selected valuable materials can be adopted. Control materials are studied on a comparative cost basis under this analytical technique. Hence the more valuable material remains under strict control . 

Managers should be more cautious towards expensive materials as compared to cheaper materials. Therefore, in order to have proper control over the materials in the container, they are divided into three categories according to the price. The category ‘A’ includes materials that are more valuable and range from 70% to 75% of the total value of materials kept in the repository, although their number or quantity varies from 5% to 10%. The ‘B’ category includes items that range from 15% to 20% of the value of the goods stored in the store, but the number or quantity varies from 20% to 25%. Those items are placed in the ‘C’ category, which are only 5% to 10% of the value of the goods stored in the store, But they range from 70% to 75% in quantity or number. This type of analysis of materials is called ABC analysis. While controlling, most control is placed on ‘A’ category items, little attention is given to items in B category and very little attention is given to items in ‘C’ category. Materials of ‘A’ category should be kept with utmost care and issued only after being authorized by the Chief Officer. It should also be noted that capital is not unnecessarily trapped in ‘A’ category items. 


Bcom 2nd Year materials notes

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