Question

Question 1 (10 Points)

You observe a newly appointed Cost Accountant of Progressive Manufacturing Ltd. that there is no systematic procedure for purchasing materials with the result that purchases are often made on ad hoc basis at frequent intervals at un-competitive prices and cannot always be related to the specific requirements of the departments. Draft a suitable scheme along with the relevant specimen forms for the information to the General Manager for enabling him to ensure the compliance with the systematic purchase procedure by the departments concerned.

Answer 1

Scheme for the purchasing of the Material in the company

We should have proper guidance and steps for the purchases of the material in the company

The following steps may be followed for the purpose of the compliances in the purchasing of the raw material in the company

1

There should be proper check over the inventory of the company over periodical level

We should define the Minimum order level where the company should place an order

2

When there is a requirement to purchase the raw material then the Production department should raise its concern for the purchase of the material with the purchasing department

(Raise request in the purchase requisition note)

2

For the purpose of the purchase of the material, the purchasing department should raise the call for the quotation from at least 3 vendors

3

Prepare the comparison sheet for the vendor on the basis of the quotation received

4

Select the one who is having a more competitive price and the best services as well

I am also attaching a purchase requisition form.

requisition form 27 [Compatibility Mode] - Word geetanshu makkar - 0 X 5:05 Home Insert File Design Layout References Mailings Review View Help Tell me what you want to do Share 11.1. .. ..7 (to be completed by requessor) ...2...11.3.1.1.1.4.1.1:..5.. ..6... LIOPO PRORS PR Reference No: ......... (to be drieldಹಿಕತೆ by Pegಬಜಿಸಿದ PURCHASE REQUISITION FORM F. FINANCIAL DETAILS (to be completed by Bursar Finance Oficer) (1) Operating Budget Allocation: YES NO Instructions: (1) Fulfit te PR Reference Naber with the submission of this form for approval. (2) Plaasd ensurd the detail e d in this formally willkoke details in tkd quotation form 3) Any requisition should be made at feest 3 mondes in advance before it is needed Allocation Cost of items Requested Balance of Allocation Bursar Finance Officer's Signature Date (2) BPIMB Capital Budget Allocation YES NO A PARTICULARS OF STAFF REQUESTING (to be completed by requestor) Name Position Faculty Department Division Signature Date Allocation Cost of Items Requested Balance of Allocation Bursar Finance Officer's Signature Date B. DETAILS OF REQUISITION (to be completed by requestor) G. APPROVAL (to be completed by Vice-Chancellor/Registrar) Per l'ait Price (RM Total Specifications Quantity (RU) Approved Not Approved ...1..18.......7.0....16.0.1.,15.11...4...1..13.0.1...2...1.111........ H. URGENT PURCHASE PAYMENT ONLY RM1,000.00 and RVI 0,000.00) Please justify for wgent purchase TOTAL * Not more than 6 items & attach separate sheet necessary Approved Not Approved JUSTIFICATION Remarks: D. CLASSIFICATION OF PURCHASE: Consumables: YES NO Ninor equipment: YES NO Major equipment: YES Others Authorized Signature Vice-Charseilor Registro Busar) To be a proud is the presence of the regular NO (Specify): Date E. RECOMMENDATION (bo be completed by Head Coordinator and Dean Director) Signature Head Coordinator Becommended: YES NO Dean Director Becausmendedi YES NO Remarks (if any) Page 1 of 2 262 words English (United States) BE -- + Type here to search о еw нов - + 70% ENG 11:38 PM 2/19/2020517