Observation

Comments

Many candidates attempted this question and they performed brilliantly well. However, their weakness was majorly on (a) aspect of the question where candidate gave answers for reasons for stock holding and stock holding as against the requirement of the question.

The responses expected from candidates are:

3(3a.     Reasons for Stock Valuation
                        Stock valuation helps to:
i.          determine the value of materials in the store;
ii.        provide a basis for pricing stock issues;
iii.        provide the means of operating stock control by value;
Iv.        provide information for determination of profit;
v.         determine selling prices;
vi.        provide the means for materials costing to ascertain the cost of producing a product;
vii.       ascertain the accuracy of product prices.

(b)        (i)                     Codification systems
                        Plastic bag                               Alphabetical
Printing paper                         Alphanumerical
Printer                                     Numerical
File                                          Decimal

OR
Codification systems
Code XXL-------- Alphabetical
A4-----------------Alphanumerical
3,300---------------Numerical
04.12---------------Decimal

(b)       (ii)        Benefits of assigning codes: 
i.          It helps to ensure avoidance of repeated use of long descriptive titles;
ii.         It makes retrieval of materials easier in the store;
iii.        It prompts easier, speedy and more reliable recording;
iv.        Identification is essential for mechanized recording and computerization;
v.         There is easier physical identification of stock items;

vi.        It helps in classifying stocks and introducing vocabulary or stock list;
vii.       It assists in variety reduction and standardization;
viii.      It provides a foundation for an efficient central purchasing organization;
ix.        It facilitates easier summarizing analysis and comparison of depot stores records;
x.         It helps to identify unique items in the store;
xi.        It saves time in locating goods in the store;
xii.       It prevents duplication of items in the store;
xiii.      It is used in preparation of Stores Vocabulary.