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

Frequently Asked Questions

What are materials abstract?

Materials abstract is a form used to record the cost of materials in a job.

Why is it necessary to prepare the materials abstract?

The main purpose of preparing materials abstract is that it helps in easier calculation of Material Cost on a job, which in turn helps in preparing accounts for the job.

What is the format of the materials abstract?

The format of the materials abstract depends on the nature and size of the business. Generally, it contains material requisition numbers, quantity used, issue date, etc.

Who prepares the materials abstract?

Materials abstracts are prepared by the person in charge of the stores or accounts department.

Who checks the materials abstracts?

Materials abstracts are checked by the stores or accounts department to ensure that they have been prepared according to the standard format.

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True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, 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, or check out his speaker profile on the CFA Institute website.