Contents
Meaning of Two Bin System
Under this system a certain quantity of material termed as reserve stock is set apart which is not used for daily use. Under this system two bins are used. The first bin is termed as ‘running bin’s which serves the purpose of day-to-day issues.
The second bin which is turned as reserve bin’ is set aside with the certain quantity of materials. The reserve stock is set apart by taking into account the time taken by the supplier to deliver the materials.
Also Read – Meaning of Cost Accounting | Nature and Scope of Cost Accounting
When the materials in the running bin exhaust, the materials of reserve bin is used for issuing them. Two Bin System serves as a caution for the store keeper to make immediate arrangement to prepare and place a purchase reduction for procuring the required material.
However, the reserve bin should be kept rotated i.e. old materials must be issued and reserve should be created out of fresh stock.
Meaning of Bin Card
A bin is a container in which material is kept Separate bin card are maintained by the storekeeper each item of material in store. The bin cards show the details of receipts and issue of materials and balance in stock at any time.
The record is of immense help to the store-keeper in controlling the stock position. A bin card is attached to the bin, drawer or any other container in which material is stored.
Also Read – Advantages and Disadvantages of Cost Accounting|
An entry is made at the time of each receipt or issue and the new balance in stock is calculated. All these eateries of and issue are supported by documents, such as goods received note, materials return note, store requisition note etc.
A bin card is quantitative record of receipts, issue of closing balance of materials items in store. It does not contain information about the prices of materials.
Also Read – What is Installation of a Costing System | Conditions and Factors
Specimen of Bin Card
Related Links
- Meaning of Cost Accounting | Nature and Scope of Cost Accounting
- Cost Accounting | Purpose or Functions of Cost Accounting
- Advantages and Disadvantages of Cost Accounting
- Difference between Cost Accounting and Management Accounting
- What is Cost Concepts and Different Terms of Costs
- What is concept of Cost Audit | Objective and Scope of Cost Audit
- Advantages and Disadvantages of Cost Audit
- Meaning of Methods of Cost | Basic Methods of Costing
- What is meaning of Classification of Cost & elements of Cost | rules of Cost Accounting Standard
- What is Installation of a Costing System | Conditions and Factors
- What are the practical difficulties in installing cost accounting
- What is technique of Costing | Various techniques of Costing
- What is Material or Inventory Control | Techniques of Materials Control
- What is FIFO Method | advantages and disadvantages
- What is LIFO method | Advantages and Disadvantages
- What is Periodical or Annual Inventory Control System | Limitations
- Methods of Pricing Material Issues | Cost Methods
- What is Cost of Labour Turnover | Causes, Effects Classification
- What is meant by idle time | Definition, Causes, Control
- What is meaning of overtime work | Reason, Disadvantages
- HIFO method of inventory valuation |Advantages, Disadvantages
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