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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.
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.
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.