Material could be looked at from
three perspectives,
three perspectives,
1.) It could be
completed material that could be used for further production;
completed material that could be used for further production;
2.) It could be
partly finished material which needs further process for the production of
goods and services and;
partly finished material which needs further process for the production of
goods and services and;
3.) It could be
raw material.
raw material.
Definition
of Material
of Material
The American Institute of Certified
Accountant defied stock of material or inventory as the aggregate of items of
tangible property which;
Accountant defied stock of material or inventory as the aggregate of items of
tangible property which;
1.) Are ahead
for sale in the ordinary course of business.
for sale in the ordinary course of business.
2.) Are in
process of production for sale (meaning materials are in process of production
and at the end they come as product for sales).
process of production for sale (meaning materials are in process of production
and at the end they come as product for sales).
3.)
Are
to be currently used in the production of goods and services to be available
for sales.
Are
to be currently used in the production of goods and services to be available
for sales.
From the
above three definition, number 3 as raw material, 2 is partly finished and 1 is
already finished material.
above three definition, number 3 as raw material, 2 is partly finished and 1 is
already finished material.
