What is the advantages and disadvantages of store ledger
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Answer:
Answer: Store Ledger is a document kept by the cost department for each item of material. It records every movement of the material, either inward or outward. It is recorded in quantity, rate and value and the balance of the materials, after each movement. The Following shall be considered as an Advantage : It records every movement of material, both in quantity and value. Entries are made therein with respect to Purchase, return and Issue of materials. Stores Ledger is a Stock Control Record. It can supply inventory value to help preparing financial profit and loss statement. This record is kept by the cost department only. The Disadvantages shall be as follows: Due to maintenance of record by the cost department there are delays in sending the materials to the concern department and branches at the time of requirement. On the spot comparison of the physical stock of an item with its book balance is not facilated. If upto date records are not available, then management will not be able to exercise control over quantities held in stock. Answer 2) Methods of costing are as follows: Job Costing : Job Costing System is used where it is desired to ascertain the cost of a job or a specific order or of a batch of finished goods and also profit or loss on each such job. Process Costing: