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Consumable stores

Vinay Raja (student-IPCC) (699 Points)

15 August 2010  


what is meant by consumable stores?

It is given as an example for direct material in elements of cost

 8 Replies

Abhimanyu Bind (CA Final Student & Audit Assitant)   (2049 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.

1 Like

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) (3016 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.

2 Like

shahyar husain (1235 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.

M Venkat (CA finalist) (441 Points)
Replied 18 January 2021

Thanks for the information

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