After studying this chapter you should be able to:
Understand and explain direct materials and indirect materials.
Appraise the objectives of purchase department and responsibilities of purchase department.
Distinguish between centralized and decentralized purchasing.
Explain the various stages involved in purchase procedure.
Know the various documents used in purchase procedure, their specimens, their significance etc.
Ascertain direct material cost.
Understand the duties and functions of a store keeper.
Know the meaning of inventory control and apply the techniques of inventory control.
Fix various stock levels.
Understand the perpetual inventory system and the periodic inventory system and the differences ...