For reasons of efficiency a manufacturer will try to minimise
the length of time that materials are held in stock before being
fed into the production process. In a typical factory materials
will be ordered from stock by means of a requisition, authorised by
the production manager, and the relevant stock account will be
updated. The requisition will then be priced and passed to the
accounting department in order that the cost accounts can be
adjusted. A “materials transfer note” may accompany the
materials as they move through the factory.
