COSTING
what is meant by consumable stores?
It is given as an example for direct material in elements of cost
12 Replies
Abhimanyu Bind
(CA Final Student & Audit Assitant)
(2051 Points)
Replied 15 August 2010
Consumable stroes with reference to a factory is Oil, Grease, cotton etc.
Consumable stroes with reference to an office it is stationeries etc.
It is other than the main trading stock.
In short it is the supporting material in daily activities of production in factory.
obeid
(learner)
(292 Points)
Replied 15 August 2010
Yes it is direct expense
Consumables store are those goods other than main raw materials which are consumed during production like oil, grease, waste etc.
Shankar Shridhar
(Student-CA Final(New) Articled Assistant)
(115 Points)
Replied 15 August 2010
The things which u consume for supporting ur daily production activities
is consumable stores.
abhishek vats
(Mba)
(364 Points)
Replied 30 January 2012
obied u r wrong . consumable store r indirect exp. these are factory overhead
Ashish
(XYZ)
(86 Points)
Replied 31 January 2012
A consumable is something that is capable of being consumed; that may be destroyed, dissipated, wasted, or spent.
Consumables are products that consumers buy recurrently, i.e., items which "get used up" or discarded.
For arc welding one uses a consumable electrode. This is an electrode that conducts electricity to the arc but also melts into the weld as a filler metal.
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 20 June 2018
Consumables are goods used by individuals and businesses that must be replaced regularly because they wear out or are used up. They can also be defined as the components of an end product that is used up or permanently altered in the process of manufacturing.
Goods which are used up (not returned) after issuance from stores become incorporated into other goods and loose their identity or cannot be used for their intended purpose without extinguishing or transforming their substance.
The treatment of consumables and stores depends on the nature of business.
If the consumables are used in the operating or direct manufacturing process, then they are treated as Direct/Operating expenses.
If in the same factory, stationary is used which is a non operating expense, it shall be treated as Indirect Expense.
shahyar husain
(1240 Points)
Replied 31 December 2020
Expense items such as stationery, packing material, etc. may have been purchased during the year to be used in the business activities. If any of these expenses are not yet used or consumed at the end of a financial year, they will be used or consumed in the next financial year.
Dahksan Dahksan
(2 Points)
Replied 02 December 2022
Guys anyone tell me where did i write it factory oh or something tommorow is my exam
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 03 December 2022
Consumable stores is your creditor!!
Ayush
(Executive )
(6760 Points)
Replied 08 February 2023
In the context of cost accounting, consumable stores are considered direct materials and are a significant component of the total cost of production. They are directly related to the production process and can be traced back to the finished product.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 08 February 2023
Can we put it into CWIP directly ? NO! YES!! It's depends upon your company policies how you name it. Only accounting is real and the journal heads.
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