Q19. Write short notes bills of materials.
Ans. When a job order is received by a firm, then a list of material is prepared by such firm which is called as bills of material. It indicate the total quantity required of all types of material in such job, their except specification etc. and signed by authorized signatory. It is used same as material requisition note. Quantity to the extent of written in such bills of material can be issued to the department and if any further quantity of goods is required than further authority have been taken.
Advantages of bill of material:
- Serve a basis for issue of material
- Variance can be find out by comparing actual material with such bill
- Reduce clerical activity
- Help in preparing budget
- Help in controlling use of material