5RQ
Question
Discuss some measures that should be taken to maintain control over merchandise inventory.
Step-by-Step Solution
VerifiedMeasures for inventory control is an interconnected process that starts from inventory procurement and ends with inventory release from the stock.
Merchandise control is related to the authorized and controlled accounting system for making purchases and sales. This control ensures merchandise safety, flow record, and wastage reduction.
Following measures are taken to accomplish merchandise control –
a) Merchandise should be purchased from the only approved vendors and with proper authorization.
b) Properly tracking the purchased inventory and checking or documentation and damaged items at the time of delivery.
c) Proper recording of damaged inventory and its removal from the stock.
d) Annual counting of physical inventory to prevent theft, damage, or error.
e) Maintaining a proper record of sold or removed inventory from the stock.