INVENTORY VALUATION MANAGEMENT AND CONTROL IN MANUFACTURING ORGANIZATION.
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ABSTRACT
The need for holding inventories is invented in any business organization. The space of the inventory will be properly controlled so that the object of carrying or maintaining adequate inventory lauds at minimum cost can be realized.
The study therefore, examined the system of stock valuation, controlled and management in Emenite Limited. Considering the nature of the study and the company, a lot of data were generated from questionnaire administration and proposal interview conducted on staff of the industry.
Based on the method of data collection, the researcher found out that the system of inventory control is adequate in design and effective in operation as regards the determination of stock levels, which could be attributed to the use of scientific method in determining the quantity and time to order.
The researcher strongly believe that proper and accurate recording of the bin cards, thee use of scientific method in stock level
TABLE OF CONTENTS
CHAPTER ONE
- Background of the study
- Statement of problems
- Purpose of the study
- Scope of the study
- Research questions
- Research hypothesis
- Significance of the study
- Limitation of the study
- Definition of terms
CHAPTER TWO
LITERATURE REVIEW
- Purchasing procedure
- Receipt of material
- Accounting Treatment
- Stores Routine
- Inventory Control
- Stock cost
- Inventory control Terminology
- Types control system
- Method of valuing material
CHAPTER THREE
- Research Design
- Area of study
- Population of study
- Sample and sampling procedure
- Instruments of Data collection
- Validation of the instrument
- Reliability of the instrument
- Method of Data collection
- Method of Data Analysis
CHAPTER FOUR
- Presentation and Analysis of Data
- Testing of hypothesis
- Summary of Result
CHAPTER FIVE
- Discussion of Result/Findings
- Conclusions
- Implications of Research Findings
- Recommendations
- Suggestions for further Research
References
Bibliography
Appendages/Appendages
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF STUDY
Inventory valuation, management and control is the system designed by the management of a firm to control its investment in stock.
This is found to be in existence in Emenite limited Emene, which produces roofing sheets and hard boards for ceiling. The system involves the recording and monitoring of stock levels, knowing when to place orders and how many orders to be placed. Effective, efficient and economic inventory helps to check the following costs:-
- Carrying cost which include interest on capital invested in stock
- Storage charged
- Store staffing
- Material handling cost
- Transportation cost
Since management needs information on inventory as a guide to decision making, inventory handling should not be placed on the basis of trial and error.
Material control is an act of -management, which ensures the provision of the required quantity of inventories of the required quantity at the required time. With the minimum amount of capital tied up. It embraces stock control procedure, placing of purchasing, receiving, inspecting, storing requirement and issuing of stocks.
It is an important and difficult task, inventories are necessary in order to satisfy ever yawing need of customers and smooth running of an organisation, most organisation invest in large number of inventory items, irrespective of the system of storage adopted there must be place for everything are everything in it’s place for the stock weeping system to operate efficiently.
Floor space is very expensive and must be used to the best advantage. It is therefore necessary to build warehouse for storing materials and provide things for feasible, bins racks and shelves must be provided.
1.2 STATEMENT OF PROBLEMS
Problems of stock valuation its management and control exist in almost all firms except service oriented organizations. The problems arise form the fact that most organizations (mainly manufacturing companies) based their stock control on human judgment approach rather than applying modern scientific models like recorder levels which removes entirely all elements of bias in determine stock levels, lead time provision, Economic order quantity (EOQ) and other relevant inventory models are conspicuously ignored.
The relative degree of weakness of the internal control system with respect of stock, leaves much to be desired especially in the…
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