Question 1 (10 Points)

You observe a newly appointed Cost Accountant of Progressive Manufacturing Ltd. that there is no systematic procedure for purchasing materials with the result that purchases are often made on ad hoc basis at frequent intervals at un-competitive prices and cannot always be related to the specific requirements of the departments. Draft a suitable scheme along with the relevant specimen forms for the information to the General Manager for enabling him to ensure the compliance with the systematic purchase procedure by the departments concerned.