Get the complete project »
- The Complete Research Material is averagely 46 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.1 Background Of The Study
Stock control is the system used in a firm’s investment in stock, which involves recording and monitoring of stock level, forecasting future demand and deciding when and how many to order, in other to minimize overall cost associated with stock. This is a managerial responsibility which focuses on material control, procurement, quality control and stock holding. Stock control is essentially an activity that is concerned with the efficient purchase and use of material for the attainment of predetermined corporate objectives.
The need for efficient stock control in the face of increasing cost of material due to high demand of such materials, economic inefficiencies cannot be over emphasized.
Stock constitutes an essential cost element of production, in manufacturing industries, whether process or job order firms. The objectives of an industry especially a private industry is to make production can be obtained when cost elements like stock and its cost controlled which will lead to less expenses and higher profit.
In order to prevent manufacturing industries from running out of stock, the right material has to purchased from the best source at a good price on a positive note, stock control has an important role with regard to profit maximization.
1.2 Statement of the Study
Due to economic problems of monetary instability and inflation, there has been high cost of material. Huge sum of money is lost through various forms of purchase fraud, low quality of materials and store materials and in addition the method of stock valuation. Beside the increased materials cost, misadministration which may cause or lead to stock out cost, this present a major problem of disruption use in operation as a result of inaccurate balancing of material acquisition with wage also account for high cost of materials acquisition. Problem of disruption can lead to supplies disaster of various magnitude one of such supply disaster may be stock-out-cost. The consequences of this include loss of current sales, premium payment for such delivery, loss of future sales and also good will.
1.3 Objective of Study
In carrying out this study of stock control in Eternit Plc, Sapele, the following objectives will be achieved.
To study the material and stock control policies and by evaluating, analyzing the purchasing procedures, materials holding methods and various accounting method of costing inventory.
To investigate, so as to identify the controllable and incontrollable variables associated with materials cost control with a view of determining ways of keeping them within controllable limits.
To highlight the need and importance of sound scientific approach to stock control in the face of our exteriority economy, and ever increasing cost of stock and materials.
To analyse the efficiency of their stock holding using economic order quality (EOQ).
1.4 Research Questions
Research questions enables one to view the essence of literature review to provide the required foundation for under taking on empirical study on stock control, answer required to the following research questions;
i. How familiar are you with the activities of the store and materials holding department and purchase and supplies department?
ii. In your own opinion, what are the functions of the store and materials holding department and the purchasing supplies department?
iii. How has the store or material holding department and the purchasing and supplies department in proved the stock control system of the company?
iv. How reliable is your stock control techniques?
v. What do you think is the major cause of inefficient and ineffective stock control in the economy?
vi. What are the major considerations that are criteria for the selection of a supplier for an order?
vii. How efficient is the local purchase order (LPO) committee?
vii. How does stock control play an important role in the profit maximization of the company?
ix. How reliable is your internal control system?
1.5 Significance of Study
Just as humans are very important to the process production, stocks are also very important because they are needed to be converted to finished goods. Stock control is vital for Nigeria firms especially in period of inflation which consequently leads to folding up of a lot of firms due to their inability to control stock constitutes a major part of the company’s investment, there is need therefore to control stock because more than half of the firms incomes are used to purchase stock for production. Hence, there is need to have effective stock control so as to avoid storage of stock for production and at the same time, too much which will rest in wastage and high holding stock cost.
This research work is intended therefore to fill the gaps that have existed and create a ground for the future research with attempt to offer practicable suggestion on stock control in Eternit Ltd Sapele and hope that the suggestion will be of benefit to the company and other manufacturing firms. It will go a long way to enhance interest in new approaches, concepts and philosophies aimed at better cost control over materials.
1.6 Scope of Study
This research work is committed to cover the following:
To educate analytically the procurement stock controls policies and practice of Eternit Ltd, Sapele. The purchasing procedure of the organization was examined.
A method of study of stores department was particularly carried out on its organization, it various stock control methods as well as its stock level analysis.
The cost accounting section involvement in stock control and material accounting system was examined with regard to methods of costing materials issued, stores control ledgers and stock taking and checks.
1.7 Limitation of Study
This study limited by the following factors:
The procedures involved in obtaining data was cumbersome, series for approval had to be granted before certain form of data were released even after obtaining approval to carry out the research study, the difficulty of eliciting the necessary co-operation of those in place of relevant information has experienced. Some of those in place of relevant information declined for fear of giving at secret information of the organization others assumed this study to be fact finding exercise into their fraudulent practices and mismanagement, as such declined responds.
Unwillingness to respond to questionnaire. Also to an appreciable extent, the study was limited by the value aspect which could be determined by statistical data.
1.8 Definition of Terms
1. ABC Analysis: A basic technique of stock control, which classified stock control, which classified stock according to monetary values stock items are these categories as:
i. A- item; high value of items are this categorized as.
ii. B- items; moderate value items.
iii. C- low value items.
2. Bin card: A store record showing maximum quality to be held in stock and re-orders level.
3. Carry cost: Cost incurred in maintaining inventories including storage, insurance and cost of funds invested in.
4. Controllable Cost: These costs which are subject to changes by action or decision of an individual responsible for the control of costs.
5. Current Assets: These assets which can be converted into cash within an accounting year or within the operating cycle.
6. Expire Cost: A cost that has no future revenue producing potential.
7. EOQ (Economic Order Quality): The optimum quality of stock that minimized the carrying costs and ordering cost.
8. FIFO (First In, First Out): A material that is issued which assumes that materials are issued from orders stock and according price. They are issued based on the time they were bought are issued out first as the name implies.
9. Effectiveness: The accomplishment of a desire objective, goal or action.
10. Efficiency: The accomplishment of a objective goal or action minimum resources.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. THE EFFECT OF COMMUNICATION GAP IN THE ACHIEVEMENT OF ORGANISATIONAL GOAL (A CASE STUDY OF NIGERIA BOTTLING COMPANY Onitsha)» ABSTRACT In writing an abstract, the researcher needs to write on how he or she intends carrying out a study. The topic of this project is The Effect ...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study Since 1979 Nigeria has been operating three level of government as a federation. During the era o...Continue Reading »
3. ICT SKILLS, SOCIAL MEDIA USE AND SERVICE DELIVERY BY LIBRARIANS IN FEDERAL UNIVERSITIES IN SOUTH-WEST, NIGERIA» ABSTRACT Service delivery is the primary function of any university library. The cumbersome nature and the inadequacies of traditional library service...Continue Reading »
4. THE ROLE OF MODERN ACCOUNTING IN MASS MEDIA (A CASE STUDY OF FEDERAL RADIO CORPORATION NIGERIA (FRCN) KADUNA.» CHAPTER ONE 1.0 INTRODCUTION Accounting can be defined as an act recording classifying, summarizing and reporting of business transaction for preparat...Continue Reading »
» ABSTRACT This research work “Computerized Audit System: Issues, Problems and Prospects” (A Case Study of Akintola Williams Deloitte Abuja)...Continue Reading »
6. INVESTORS RELIANCE ON FINANCIAL STATEMENT (A CASE STUDY OF UNION BANK OF NIG. PLC, UYO BRANCH AKWA IBOM STATE)» ABSTRACT The principal aim of this research work is to show financial statement analysis and the degree investors can rely on financial statement and ...Continue Reading »
» CHAPTER ONE 1.1 BACKGROUND OF THE STUDY There have been significant progresses in the past years but more intensely during the last years aimed at the...Continue Reading »
8. GROWTH AND LAYING PERFORMANCE OF JAPANESE QUAILS (Coturnix coturnix japonica) FED GRADED LEVELS OF SWEET POTATO (Ipomoea batatas) AND SWEET POTATO PEE...» production values of birds fed 10% sweet potato peel meal (82.31days) was statistically similar with birds fed 0% sweet potato diets (82.31). There wa...Continue Reading »
9. EFFECTIVE INTERNAL CONTROL SYSTEM AS A MEANS OF FRAUD PREVENTION AND DETECTION IN HOSPITAL MANAGEMENT (A STUDY OF ALUTA HOSPITAL, OLEH)» CHAPTER ONE INTRODUCTION 1.1 Background of the Study No economic entity can progress when there is fraud in the operations of its management. Fraudule...Continue Reading »
10. THE ROLE OF NIGERIAN STOCK EXCHANGE IN THE DEVELOPMENT OF THE NIGERIAN ECONOMY (A CASE STUDY OF FIRST BANK OKPARA AVENUE)» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY The Nigerian stock exchange which started as the Lagos stock exchange Act of 1961, following ...Continue Reading »