What alternative control measures should Mrs. Bello impose in order to control the records and transactions in all her store branches?
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?
-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
1: Hire employees that will work as record keepers of inventory, separate from the ...view middle of the document...
This disadvantage can be offset by imposing sanctions/penalties to sales personnel who lose them
3: Use computer inventory system/program.
-It is systematic
- It is convenient
- It is reliable
-Purchase of devices and computers and their maintenance is very costly.
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. The difference comes down to the disadvantages of the other ACAs which is the expense factor. The tear-off tag system will allow better control and it will be cheap. This ACA is a feedforward type of control, actively preventing problems through a change in inventory system. This also enables concurrent and feedback control. The business can now monitor better the activities of the branches by comparing stubs to the books. It also provides the Mrs. Bello feedback on the operations once considerable time has been used-up using this inventory.
The group concludes that a business that branches out must have effective and efficient control over inventories. Physical counting simply does not suffice more so since the business has few employees which would be too much work on their part. Having a modern and tested inventory system allows for better control of inventory and, in some way, better control of employees' performance.