what do you understand by the term material contract ? please send big answer to this question
Answers
Answer:
Material Contract means any contract or other arrangement (other than Loan Documents), whether written or oral, to which any Credit Party is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect
Answer:
Material control refers to the management function concerned with acquisition, storage, handling and use of materials so as to minimise wastage and losses, derive maximum economy and establish responsibility for various operations through physical checks, record keeping, accounting and other devices. ”
Meaning of material control and important techniques of controlling material cost
Explanation:
Material control is systematic control over the purchasing, storing and using of materials so as to have the minimum possible cost of materials.
Techniques of material control:
1. Level setting:
The following levels are Re-order level, Minimum level, Maximum level, Danger level and Average Stock level.
2. Economic Ordering Quantity:
The total cost of material includes acquisition cost, ordering cost and total carrying cost.
3. Just-in-Time Inventory system:
Just-in-Time purchasing is the purchase of material in such a way that delivery of purchased items is assured before their demand.