Business Admin Exam queries and
answers graded A+
What is stock control? - ANS✅✅Process of ensuring stock maintained & monitored to ensure
organisational requirements & legal restrictions are followed in relation to:
- Storing items
- Moving items
- Selling items
What are the different types of stock? - ANS✅✅- Raw materials & components (ready for use)
- Work in progress (unfinished in production)
- Finished goods (ready for sale)
- Consumable (e.g., food & fuel)
What are the different requirements & restrictions on stock? - ANS✅✅- Sell/ use by date (fresh
items)
- Flammable (alcohol)
- Shelf life & correct labelling (medical)
- Manual handling procedure (large items e.g., fridge)
What are the benefits of good stock control? - ANS✅✅- Max revenue
- Procedures in place for loss & theft
- Limited shelf/ product life monitored
What does a good stock control system ensure? - ANS✅✅- Effective delivery
- Reduces waste
- Reduces unnecessary costs
- Stock system meets legal requirements
- Meets customer needs & expectations
- Maintains appropriate amount
- Tracks movement
, - Allows effective procurement
- No unnecessary stock storage
- Legal requirement followed
- Simplifies process for staff
What are the adverse effects to the organisation of ineffective stock control? - ANS✅✅- Additional
costs
- Increases waste
- Delays in supply chain
- Reduced customer satisfaction
- Breaches in law = prosecution
What are the adverse effects to the supplier of ineffective stock control? - ANS✅✅- Delays in
supply chain
- Procedures not followed
- Damage to stakeholder relationships
What are the adverse effects to the customer of ineffective stock control? - ANS✅✅- Delays in
supply chain
- Receipt of goods unfit for purpose
- Loss of trust with org
- Increased time dealing with issues
What are the benefits of electronic stock control methods? - ANS✅✅- Stock & pricing data
integrated with accounting & invoicing systems
- Sales order processing & purchase order processing can be integrated with existing suppliers
- Automatic stock monitoring, triggering orders when reorder level is reached
- Bar coding systems which speed up processing & recording
What are the disadvantages of manual stock control systems? - ANS✅✅- Rely on staff counting &
recording
- 'stock held' figure regularly checked, can be inaccurate
- Wrong goods delivered/ not dealt with right
answers graded A+
What is stock control? - ANS✅✅Process of ensuring stock maintained & monitored to ensure
organisational requirements & legal restrictions are followed in relation to:
- Storing items
- Moving items
- Selling items
What are the different types of stock? - ANS✅✅- Raw materials & components (ready for use)
- Work in progress (unfinished in production)
- Finished goods (ready for sale)
- Consumable (e.g., food & fuel)
What are the different requirements & restrictions on stock? - ANS✅✅- Sell/ use by date (fresh
items)
- Flammable (alcohol)
- Shelf life & correct labelling (medical)
- Manual handling procedure (large items e.g., fridge)
What are the benefits of good stock control? - ANS✅✅- Max revenue
- Procedures in place for loss & theft
- Limited shelf/ product life monitored
What does a good stock control system ensure? - ANS✅✅- Effective delivery
- Reduces waste
- Reduces unnecessary costs
- Stock system meets legal requirements
- Meets customer needs & expectations
- Maintains appropriate amount
- Tracks movement
, - Allows effective procurement
- No unnecessary stock storage
- Legal requirement followed
- Simplifies process for staff
What are the adverse effects to the organisation of ineffective stock control? - ANS✅✅- Additional
costs
- Increases waste
- Delays in supply chain
- Reduced customer satisfaction
- Breaches in law = prosecution
What are the adverse effects to the supplier of ineffective stock control? - ANS✅✅- Delays in
supply chain
- Procedures not followed
- Damage to stakeholder relationships
What are the adverse effects to the customer of ineffective stock control? - ANS✅✅- Delays in
supply chain
- Receipt of goods unfit for purpose
- Loss of trust with org
- Increased time dealing with issues
What are the benefits of electronic stock control methods? - ANS✅✅- Stock & pricing data
integrated with accounting & invoicing systems
- Sales order processing & purchase order processing can be integrated with existing suppliers
- Automatic stock monitoring, triggering orders when reorder level is reached
- Bar coding systems which speed up processing & recording
What are the disadvantages of manual stock control systems? - ANS✅✅- Rely on staff counting &
recording
- 'stock held' figure regularly checked, can be inaccurate
- Wrong goods delivered/ not dealt with right
