Category: Accounting

After the trial orders are executed, it becomes necessary for the buyer to rate the vendors to enable him to determine how he should apportion his requirements among the vendors.In other words, the basic responsibility of the materials manager is not only to locate the sources but also to preserve them through continuous rating. A vendor’s performance in meeting the quality, delivery and price standards set by the buyer has to be assessed in a systematic manner. Techniques of Vendor Rating: The purchase organizations watch his enlisted suppliers continuously and take requisite corrective action. Following rating plans are utilized for vendor rating: ADVERTISEMENTS: (a) Categorical plan(b) Weighted point plan(c) Cost ratio method(d) Eavaston’s vendor selection ADVERTISEMENTS: (e) Forced decision matrix(f) Service cost ratio(g) Bell quality rating system ADVERTISEMENTS: (h) IBM…

14 Advantages of Store Management and Codification are explained below:1. Rational codification is of utmost importance in order to locate incoming and outgoing materials quickly and accurately, to provide necessary information concerning the exact whereabouts of the materials and to supply correct and timely data to the concerned departments. It is, therefore, clearly desirable that the goods in the store house should be arranged in the sequence of the stores’ coding system, as far as practicable. image source: i.ytimg.com ADVERTISEMENTS: 2. By codification long description of materials is avoided. Names of materials are simplified by choosing symbols which are simple, clear and free from duplication. Moreover, by it secrecy can be maintained which is the essential part for the smooth functioning of the business.3. Coding system also simplifies mechanical recording…

The purchasing department is an organisational unit of a firm whose duties include some part or all of the purchasing function. This disconnection between function and, department is not always appreciated or understood by top management. image source: i.ytimg.comThe purchasing function is usually performed most economically and efficiently by a specialised, centralised purchasing department, directed by a skilled purchasing manager. ADVERTISEMENTS: However, the purchasing function does not have to be performed in such a manner. In theory, it can be performed, and in practice, it sometimes is performed by any number of different company officers or departments.The functions of purchasing department are varied and wide which are based upon different approaches. The purchasing activities may be divided into those that are always assigned to the purchasing department and those that…

The investment in inventory is very high in most of the organisations engaged in manufacturing, wholesale and retail trade. The amount of investment is sometimes more in inventory than in other assets. image source: boardroommetrics.comAbout 90% part of working capital is invested in inventories. It is necessary for every management to give proper attention to inventory management. A proper planning of purchasing, handling, storing and accounting should form a part of inventory management. An efficient system of inventory management will determine (a) what to purchase (b) how much to purchase (c) from where to purchase (d) where to store, etc. ADVERTISEMENTS: The purpose of inventory management is to keep the stock in such a way that neither there is overstocking nor understocking. The overstocking will mean a reduction of liquidity…

27 Important Short Questions with Answers on “Financial Management” for Commerce Students: image source: cottoncpa.com1. What do you understand by the cost of capital? The cost of capital to a company is the rate of return it must earn in order to satisfy the expectation of investors who provide long term funds to the firm. Cost of capital is a concept in financial management linking the investment and financing decisions. ADVERTISEMENTS: 2. Why is the cost of capital important? It is important for three reasons:1. For proper analysis of capital expenditure decisions, which are of prime importance to a firm, an estimate of cost of capital is required. The cost of capital is the discount rate used in NPV calculations and also the financial yardstick against which rate of return…

Classical theory of scientific management are given below:Scientific management is developed by Taylor and his followers, was concerned with optimising effort at the shop or operative level. In contrast there developed a body of knowledge during the first half of the 20th century whose primary emphasis was on the establishing broad administrative principles applicable to the higher organisational levels. March and Simon refer to this body of knowledge as “administrative management theory”. Image Source: i.ytimg.com ADVERTISEMENTS: Other writers call it the ‘traditional or classical theory’, ‘management or structural theory’. The foremost proponents of this theory have been Henry Fayol, Luther Gullick, Lyndall Urwick, J.D. Mooney, A.C. Railey, M.R Follet and R. Shelton. These early classical writers frequently used organisation and management principles interchangeably. This was partially due to the extreme…

Important Sources of Irrigation available in India are as follows:There are three major sources of irrigation in India. They are (a) canals, (b) wells and tube-wells, and (c) Tanks. Wells and Tubewells are the major source of irrigation. Canals rank second, while the tanks stand third. Canal irrigation has its maximum development in the Great Plains and in the Mahanadi, Godavari, Krishna deltas in the eastern coastal plains. Wells and Tubewells are popular in the alluvial plains. Image Source: upload.wikimedia.org ADVERTISEMENTS: The tank irrigation is common in the eastern and southern states. Relative importance of each source changed through time. Canals were the major source of irrigation until 1950, claiming 39.9 per cent of the net irrigated area in the country.Since then the irrigated area under canal irrigation increased, but…

Essay on the Chemical Industry in IndiaChemical Industry has an important place in the Indian economy. The chemical industry is perhaps the most diversified of all industrial sectors, covering more than 70,000 commercial products. The Indian Chemical industry may be said to have made a beginning with the setting up of a pharmaceutical unit near Calcutta in 1901. Image Source: tapflo.in ADVERTISEMENTS: It is the fourth largest industry in size next to iron and steel, textile and engineering industries. This industry has witnessed rapid growth both in organic and inorganic chemical industries. This industry is responsible for producing a wide range of products like fertilisers, drugs, dye, stilts, pesticides, paints and plastic etc.It is highly technology oriented industry and therefore a lot of emphasis is laid on research and development…

Essay on the Tribal Population in India (928 Words).Division of society in various caste groups is also a significant feature of the Indian population. The caste system is the main characteristic of Hindu society. Two major social groups whose distribution is an important subject of study is the Scheduled Casts and the Scheduled Tribes. They together constitute about 24.4 percent of the total population of the country—Schedule Caste 16.2 percent and Scheduled Tribes 8.2 per cent according to 2001 census. Image Source: upload.wikimedia.org ADVERTISEMENTS: The tribes themselves display a very high degree of diversity in their ethnic and linguistic characteristics. This diversity is evident from the fact that the Scheduled Tribes consist of 354 different communities. These tribes have some unique social and economic characteristics. These tribal communities normally live…

In order to understand clearly what this subject is about, it is proper to distinguish it from Private Administration. The management of affairs by private individuals or bodies of individuals, e.g., club, company or corporation is private administration while the management of the affairs of the public by central, state or local government or statutory bodies is Public Administration. Image Source: npsd.k12.wi.usThe administration while the management of the affairs of the public by central, state or local government or statutory bodies is Public Administration. The administration of post .offices, the administration of the supply of electricity by the State Electricity Board, the management of Broadcasting by the B.C. (British Broadcasting Corporation) is the instances of Public Administration. ADVERTISEMENTS: It has been said that there is not any marked difference between…