1. Materials of the appropriate quality and specifications should be purchased only when
required and appropriately authorized
2. The suppliers chosen should represent an appropriate balance between quality, price and
delivery.
3. Materials should be properly received and inspected
4. Appropriate storage facilities should be provided and stock level physically checked on
regular basis.
5. Direct materials used in production should be charged to production on an appropriate and
consistent pricing basis.
6. Indirect materials used in production and non-production department should be appropriately
charged to the correct cost centre.
7. The documentation accounting system and controls should be well designed.
8. Stocktaking must be well organized to ensure quantities are available when required.
marto answered the question on February 26, 2019 at 09:00
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