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Qualification And The Functions of Purchase Officer. (Cost Accounting) Purchase Officer is the head of the purchase department.

He is also purchase executive, Purchase Manager or purchasing director. His primary responsibility is to purchase right quality, quantity of materials & supplies at responsible prices at the right time. He is the controller of the purchase and responsible for purchases on behalf of all the depts. Qualification of Purchase Officer: The purchase officer occupies high position & plays an important role in the management. He must have good quality and qualification. The following are the main qualifications of a Purchase Officer:

He should be a person of undoubted integrity, honesty, initiative and good conscience. He should at least be a commerce graduate with degree or diploma in Purchase Management. He should have complete information about the material which is required to purchase, so that requisite quantity of materials may be purchased at reasonable price from reliable suppliers. He should maintain proper documents like price list, catalogue, trade, journals to help him in finding out best possible market. He should have up-to-date knowledge of import & export, tax assessments etc. He should be tactful in maintaining sound & friendly relation with his supplier.

T o conclude the Purchase Officer should be a person who is able to obtain maximum value for a rupee spend by him. He should work honestly for the interest of the organisation as a whole. Duties / Functions: The following duties or functions are assigned to the Purchase Officer: Selection of Supplier: The primary duty of the Purchase officer is to select right supplier. It is to be done by preparing comparative statements. Out of the comparative statement reliable supplier is selected by the way of securitization. At the time of placing the order the suppliers capacity is also judged. O rganizing the purchasing department: The duty of the purchase officer is to prepare purchase policy and its execution. He must have to manage the personnel of his dept. and supervise them timely.

Advising and coordinating: it is the duty of the Purchase officer to advise the production department regarding quality, quantity and market trend. His duty is also to co-ordinate with other departments. Approval: At the time of purchase of material the duty of purchase officer is to verify material specification and approve the purchase orders.

The Store Keeper Meaning and Responsibility.


Store keeper is the important person for the store. He is the in charge of the store department and also responsible for store control. He must be a skilled person and takes care of the store. He keeps a watch full eye on the movement of the materials with a view to control the materials in the store. He is known as chief-store keeper or store superintendent. A store keeper should have technical knowledge and experience in the maintenance of the store. He should have organizing ability and undoubted integrity. Duties and responsibility: The primary duties of the store keeper is various and varied according to the organisation structure. A store keeper is being the head of a store dept. He is entrusted the following duties & responsibility. Receiving material: The primary duty of the store keeper is to receive the material from the supplier. At the time of receipt of material, he has to see that the materials have been sent by the supplier on the basis of purchase order. Arranging materials: The materials received by the store keeper must be arranged in a proper manner. Bins should be allotted to each and every item. Preservation of the material: After the receipt of material they are to be preserved properly. It is the duty of the store-keeper to keep the material in store on safe custody. Unless the quality may deteriorate loss of material may be possible. Recording: It is the duty of the store keeper to record the receipt and issue of material in the respective bin card regularly. It will indicate the quantity of stock held by the store every time. For recording, the store keeper maintains store ledger and bin cards. Issue of material: The store keeper issues the material as per the requisition of the production. When store keeper received requisition he issues material from the store. Issuing purchasing requisition: When the stock reaches at ordering level the store keeper sends purchase requisition to the purchasing department for the fresh purchase of the materials. Accordingly, the purchasing departments purchases materials as per quantity and quality stated there in.

Supervision: The store keeper must be coordinate and supervise the duty of the staff under his control. As he is the head of the store department, he manages the entire department.

The Meaning of Purchase Department In Cost Accounting.


The purchase department plays a very important role in an organisation because purchasing has its effect on every vital factor concerning the manufacture, quality, cost, efficiency and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines and tools at the most favorable terms consistent with maintaining the desired standard of quality. Purchasing is the most important function of materials management as the moment an order is placed for the purchase of materials, a substantial part of the company's finance is committed which affects cash flow position of the company. Thus, if the size of a business concern permits, there should be a separate purchasing department and the responsibility for purchasing all types of materials should be entrusted to this department. The head of this department is usually known as the Purchase manager or the supply manager or the chief buyer. Following are the basic objectives behind establishing a separate purchasing department:

To make continuous availability of materials so that there may be uninterrupted flow of materials for production. To make purchase competitively and wisely at the most economical prices. To make purchase in reasonable quantities to keep investment in materials at minimum. To purchase proper quality of materials to have minimum possible wastage of materials and loss in production. To develop good supplier relationship which will ensure the best terms of supply of materials. To develop alternate sources of supply so that materials may be purchased from those alternate sources if a particular supplier fails to supply the materials. To adopt the most advantageous method of purchase to ensure smooth delivery of materials from suppliers and to avoid the risks of any disputes or financial loss. To serve as an information centre on the materials knowledge relating to prices, sources of supply, specifications, mode of delivery etc.

The Meaning of Direct Expenses In Cost Accounting. All expenses which can be identified to a particular cost centre and hence directly charged to the centre are known as direct expenses. In other words all expenses (other

than direct materials and direct labor) incurred specifically for a particular product, job, department etc. are called direct expenses. These are directly charged to the product. Examples of such expenses are royalty, excise duty, hire charges of a specific plant and equipment, cost of any experimental work carried out specially for a particular job, traveling expenses incurred in connection with a particular contract or job etc.