CONTROL concerned are affected. One of the

CONTROL AND ADMINISTRATION OF RAW MATERIALS:The need for management and control of raw materials is due to the fact thatvery important to ensure that the objectives of the organization concerning the management ofThe materials are concerned are affected. One of the main objectives of management isproduce cement at the lowest possible cost while achieving the best possible performanceinvestment To achieve this laudable goal, effective control is requiredsystem, from the acquisition of raw materials to the final stage of production.The store department of the company is responsible for managing andcontrol raw materials and inventory of finished products to ensure effective and efficient managementand appropriate use to minimize waste that leads to reduced benefits of the organization.

To this end, the following internal control measures are adopted:at. Arrangement of the control of the stock of materials establishing the maximumand minimum quantity limits through independent registration in stockcontrol general ledger accounts as well as continuous recording.second. Physical checks of stocks to determine the exact amount of inventoryand then reconcile the same with the stock accounts.

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do. Continuous stock accumulation: this form of inventory goes far inplacing greater moral controls on store department staff withwith respect to theft or misappropriation of goods or

All inventory issues for factories and stores are supported by duly authorized personnelrequisitions.In addition, to minimize waste, the management of the Nigerian Cement Company, Nkalaguensures that only the exact quantity of raw material is supplied daily to the factorybase The method of issuing raw materials to the production department is based onlast to enter first (LIFO). None of the raw materials is perishable, so it is not necessaryfor special storage arrangements.PURCHASES AND DISTRIBUTION OF RAW MATERIALS:The company’s board of directors is the main body of policy formulation. The advice isled by the President Elect.The power to purchase and control inventory is in the purchasing divisions; whichthe store as one of its units.

This function is delegated to the Procurement Officer and isafter receiving the request from each departmental manager. Accountabilitydepartment ensures that payments for purchased raw materials are made and neededSaved Records At the Cement Company of Nigeria, there is an established procedure for the stockacquisition and management. This is indicated in the box below:Department of production + stores – + purchases


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