Internal Controls in a Business- Example
Report: Control Measures | February 14
2013
| Grade 12- Accounting | |
Stock holding and security
Brittany Fashions is an international company which supplies young women with modern clothing and accessories. In order to make sure this business will be successful in South Africa a criteria has to be met to ensure the businesses stability. Brittany Fashions will be importing their clothing and accessories from a supplier in China, this is due to the high costs involved when selecting a local supplier, since Brittany Fashions is an international company it will be easier for the clothing and accessories to come from one source.
The mark-up percentage on garments will be 56% (cost×2.3) and on accessories it will be 60% (cost×2.5). This is an appropriate mark-up percentage as the market will handle it, people have more money to spend. Sales will be accounted for by the employees heading up the till and the accountants in change, thereafter the money will be kept in a safe which the owner has access to.
Customers will be allowed to return an item of clothing a month after purchase, if any fault is found with the product when returned, customers will be allowed to replace the product with an equal amounted one in the store. A stock taking will be done everyday after a full work day; the trading hours are 8:00-16:30 on weekdays and 9:00-14:00 on weekends. 20 employees will be hired, there will be 3 employees to do stock taking after everyday day, the stock will be transported from the warehouse to the store where an employee will record the garments received and put on the shelf and garments put in storage on site. The second employee will be in charge of overlooking the first employee (preferably someone with a business background). Training will be given to those employees without knowledge of stock taking. The third employee will be recording accessories sold and still remaining, this will also be done everyday. Stock taking is necessary to ensure
2013
| Grade 12- Accounting | |
Stock holding and security
Brittany Fashions is an international company which supplies young women with modern clothing and accessories. In order to make sure this business will be successful in South Africa a criteria has to be met to ensure the businesses stability. Brittany Fashions will be importing their clothing and accessories from a supplier in China, this is due to the high costs involved when selecting a local supplier, since Brittany Fashions is an international company it will be easier for the clothing and accessories to come from one source.
The mark-up percentage on garments will be 56% (cost×2.3) and on accessories it will be 60% (cost×2.5). This is an appropriate mark-up percentage as the market will handle it, people have more money to spend. Sales will be accounted for by the employees heading up the till and the accountants in change, thereafter the money will be kept in a safe which the owner has access to.
Customers will be allowed to return an item of clothing a month after purchase, if any fault is found with the product when returned, customers will be allowed to replace the product with an equal amounted one in the store. A stock taking will be done everyday after a full work day; the trading hours are 8:00-16:30 on weekdays and 9:00-14:00 on weekends. 20 employees will be hired, there will be 3 employees to do stock taking after everyday day, the stock will be transported from the warehouse to the store where an employee will record the garments received and put on the shelf and garments put in storage on site. The second employee will be in charge of overlooking the first employee (preferably someone with a business background). Training will be given to those employees without knowledge of stock taking. The third employee will be recording accessories sold and still remaining, this will also be done everyday. Stock taking is necessary to ensure
Bibliography: www.revenue.ie www.asisa.co.za www.accountingweb.co.uk www.acts.co.za www.tutor2u.net www.copedia.com www.allinterview.com