Materials Abstract: Definition and Meaning

To determine the cost of materials used on a particular job or work order, the following aspects are usually recorded and analyzed:

  • Material requisitions
  • Material returned notes
  • Material transfer notes

The recording sheets specially meant for this purpose are known as materials abstracts or materials issue analysis sheets.

Specimen/Format of Materials Abstract

Materials Abstract Format
Materials abstracts are prepared periodically (e.g., weekly, fortnightly, or monthly).

Benefits of Materials Abstract

The most important benefits of materials abstract are:

  • Transactions can be passed in the stores ledger directly from the materials abstract
  • The materials cost of each job can be calculated easily

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.