10 controlling

Question 1

controlling

Answer 1

measures the performance of a business against the goals set
take appropriate action if deviations occur
it’s a continuous activity

Question 2

stock controller

Answer 2

concerned with keeping optimum stock levels (not too much or too little)
effective=optimum
leads to efficiencies because right stock right place right time
to meet production requirements and satisfy consumer demand

Question 3

JIT

Answer 3

just in time manufacturing
keep the minimum
never run out
involves finding a supplier who will deliver exactly the right amount of stock at the exact time you need it
stock is used straight away
products shipped to consumers immediately
used in japan

Question 4

adv of stock control

Answer 4

lower insurance premium

spot and eradicate theft

sales will improve bcos always abailable

money not lost on deterioration or obsolescence

Question 5

efficiencies achieved through stock control

Answer 5

eliminating the cost of carrying too little

costs associated with having too much

Question 6

quality control

Answer 6

concerned with inspecting work done to ensure it meets the required standards
business may achieve a quality control symbol
reduces waste and satisfies customers
eliminates defects

Question 7

1 inspection

Answer 7

inspector checks goods
luxury items all checked
normal just sample batch

Question 8

quality circles

Answer 8

controls quality
employees spot quality problems
employees come up with
solutions
small selection of employees volunteer
idea that employees know best

Question 9

(3) award Q mark

Answer 9

quality mark
stamp of quality
Excellence Ireland Quality Association

Question 10

ISO 9001

Answer 10

internationally recognised award
only given to companies who consistently prove to an independent team that the products meet the highest standard
competition edge

Question 11

iso 9001 adv

Answer 11

customers are happy
repeat purchasing
increase in sales

lower costs
money not wasted on repairs
processing complaints

marketing
awards improve customers’ interest

Question 12

efficiencies achieved with quality control

Answer 12

minimises the costs associated with selling faulty goods
eg administrative costs of returns, loss of reputation, lost productivity

consistently high results in repeat purchasing, higher prices, consumer loyalty, business may become market leader

Question 13

credit control

Answer 13

ensures all debtors pay their bills on time to eliminate bad debts

Question 14

minimise the risk of bad debts

Answer 14

1asses customer’s creditworthiness
2 set appropriate credit limits and periods
3 offer incentives
4 policy for late payments/ partial payments
5 efficient administrative system that can take legal action etc
6 adopt cash sales only policy with some

Question 15

advantages of credit control

Answer 15

ensures a business receives money on time to pay bills

reduces costs bad debts

helps select right customers to offer

Question 16

financial control

Answer 16

ensures a business is profitable

always be liquid

uses a budget to monitor and make changes

cash flow forecast

ratio analysis

Question 17

advantages of controlling

Answer 17

1 achieve your target
corrective action if off

2 reduction in costs
perf products

3 improves cash flow
debtors on tome
cashflow improves
reduction in bankruptcy risk

4 increases sales and profits
top quality
stock control meets customer demands