Premium Essay

Confetti

In:

Submitted By demdem
Words 449
Pages 2
CP:
What alternative control measures should Mrs. Bello impose in order to control the records and transactions in all her store branches?
MP:
How to go about the time-consuming physical counting procedure or how to keep track of inventory more conveniently?
How to have harmonized daily cash deposits with the tally on the sales notebook?
How can Mrs. Bello avoid occurrences of fraud among her employees?
Objectives:
-To have effective control measures.
-To minimize losses.
-To have a convenient inventory tracking procedure/system.
-To have coordinated tally and cash deposits
-To eliminate fraud in the workplace

ACA:
1: Hire employees that will work as record keepers of inventory, separate from the salesgirls who will work on the transactions.

Advantages:
- Lesser possibility of fraud
- Effective control
- Enables updated stock card postings

Disadvantage:
- Human factor causes effectiveness to diminish
- It adds more expenses
- More employees will make it difficult to handle

2: Use a tear-off tag system: Salesladies will detach a paper/stub attached to every item. Each item has a unique code.
Advantages:
- Helps salesladies to keep track of items sold and be able to compare it with their books/records
- It's inexpensive
- It is easy to do/apply
- It is systematic

Disadvantages:
- There is a possibility that stubs will be lost. This disadvantage can be offset by imposing sanctions/penalties to sales personnel who lose them

3: Use computer inventory system/program.
Advantages:
-It is systematic
- It is convenient
- It is reliable

Disadvantages:
-Purchase of devices and computers and their maintenance is very costly.

Recommendation:

The group has recommended Mrs. Bello to apply the tear-off tag system method of inventory management. The group has found its advantage considerably beneficial to the business, its advantages are also identical to the other ACAs.

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