Material Abstract

Definition and Meaning

In order to ascertain the cost of materials used on a particular work-order or job, an analysis of Material Requisitions, Material Returned Notes and Material Transfer Notes is made on sheets specially meant for this purpose which are known as Materials Abstract or Materials Issue Analysis sheet.

Specimen/Format of Material Abstract

Material Abstract Format

The Materials Abstract is prepared periodically, say, weekly, fortnightly or monthly.

Benefits of Material Abstract

The important benefits of Materials Abstract are:

(a) Transactions can be passed in the stores ledger directly from Materials Abstract.
(b) Materials cost of each job is calculated without any difficulty.

Also Check:  Cost Plus Contract

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