Question 4
- What is the purpose of a purchase order?
- List six features of a good filing system.
- List four of file indexing and give one advantage for each.
Observation
Comment
This question was not well attempted by the candidates because of the (c) part of it which they must not have been grounded and having less space to answer the question.
(a) The purpose of a purchase order
The purchase order provides a clear statement of quantity and precise details of goods required and the terms under which the transaction will take place.
OR
The purchase order helps to avoid duplicated orders.
OR
The purchase order helps to keep track of incoming orders.
OR
The purchase order serves as a legal document and helps to prevent any future disputes regarding a transaction.
(b) Features of a good filing system
(i)Compactness;
(ii)Accessibility;
(iii)Simplicity;
(iv)Safety;
(v)Flexibility;
(vi)Protection;
(vii)Economy;
(viii)Cross-referencing;
(ix)Classified;
(x)Locatable
(xi)indexed;
(c) Types of file indexing and their advantages
- Book/Page/Ordinary indexing
Advantages
- It is easy to understand;
- It is arranged in alphabetical order for easy tracing; and
- It is suitable for small firms.
- Vowel Indexing
Advantages
- It is suitable for small and medium size firms;
- There is no loss of index;
- It is a permanent record; and
- Less time is required in searching the index.
- Bound book Indexing
Advantages
- It is cheap to maintain;
- It is durable;
- Pages are not easily lost; and
- It is suitable for small firms.
- Loose leaf/Loose leaf book indexing
Advantages
- It is elastic;
- Dead file is easy to remove;
- It is easy to obtain full information;
- It is easy to include additional information;
- Less time is required to locate information;
- It is easy to dispatch documents; and
- It is cheap to operate and maintain.
- Card or Vertical card indexing
Advantages
- It is simple to understand and operate;
- It can be arranged in any order;
- Arrangement order can be changed anytime
- It is cheap to install and maintain;
- It provides complete information;
- It is very elastic;
- It allows for multiple users;
- It highlights certain information;
- It keeps only active cards; and
- It allows for multiple users.
- Visible Card Indexing
Advantages
- It requires less space to maintain;
- It requires less time to locate a card;
- Information can be obtained very quickly;
- It help management in controlling sales and purchases;
- Large number of cards may be maintain;
- Signals can be used to draw attention to some facts;
- Dead cards are easily removed;
- Additional information can be written on cards; and
- List of clients is easy to prepare.
- Strip Indexing
Advantages
- Each strip contain only one item;
- It is suitable for one line information such as names and addresses; and
- Strips can be easily inserted or removed.
- Wheel Indexing
Advantages
- It is cheap to operate; and
- It is flexible to operate.
- Frame
Advantages
- It allows for quick referencing; and
- It is easy to maintain.