Question

1.3 evaluate the factors which influence the nature and structure of accounting systems

Jock Daniels has a small supermarket. He has been doing this for some years and has decided to start using computers. He has heard there are different computerised accounting systems available.

He gives you the following information:

- it must be cheap but he is willing to pay more if the system is good.

- he would like to get information about inventory.

- he would like to get information about which products are selling well and which are not

- he would also like a system which can tell him when some things are old and should be thrown away.

- He would like a system which can order things by itself.

- Jock has workers who have a reasonable knowledge of computers.

- Jock hopes that the system will help him to do better than other shopkeepers.

From what you have heard from Jock and what you know about accounting systems, advise Jock about which would be the best option for him.

Give 3 or more reasons for your answer.

(You must use the information he gave to you and what you know about systems)

Answer 1

Basically what jock is seeking for is a software which can manage Inventory effectively. He is seekose for following aspects. They are -

1.Segreagation of Moving and Non moving Inventory

2. Identification of Obselete stock

3. Automatic Order set when Inventory reaches below Minimum Order Quantity (MOQ).

According to above requirements the best option would be ERP SYSTEM ( ENTREPRISE RESOURCE PLANNING) . The Reasons are :

1. ERP would have separete program for handling Inventory system

2. It would help the user to Identify Moving and Non moving Inventory by giving AGEING REPORT which specifies age of every inventory.

3. We can figure out Obselete stock even from the same AGEING REPORT.

4 . There exists an option of setting Minimum Order Quantity MOQ which orders or pops up remainder to Order fresh inventory if the stock falls below the mentioned minimum quantity