-Company should define its method of calculation of material cost, inventory compilation.
-Company should take a stock of the inventory of the RM, WIP, FG on the last day of a month and calculate ratio
-Include all products owned even if they are not physically located on-site (e.g. material at the subcontractor for job work, material at warehouse, consignment stock held at Customers)
Thursday, March 18, 2010
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