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Question 4
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Question 4
- List five types of stocks held by an organization engaged in production.
- State five reasons why organizations hold stock.
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Comment
Candidates’ performance was very poor in both parts (a) and (b) of the question. The subject teacher should pay attention to this aspect of the syllabus. However, some of the answers are given below:
- i. raw materials
ii. components
iii. packaging
iv. spare parts
v. tools, jigs
vi. work-in-progress
vii. finished goods.
- i. to enjoy bulk discounts;
ii. appreciation of stock value during inflation;
iii. increased flexibility of output to meet increase in demand;
iv. it takes advantage of low seasonal prices to reduce production cost. |
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