EXAMPLE RECOMMENDATIONS Flashcards
Produce a written procedure.
Give details what it covers & who for etc
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Orders should be authorised by 2 people, one of whom is senior manager
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Order books should be locked away securely by budget holders
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All orders including emergency orders cannot be authorised unless they include price
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Where payment terms differ to those set as required by the FD, they must be approved by the FD prior to being agreed with the supplier
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2 ppl must authorise the payrun, including one director. There must be supporting documentation.
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All new accounts should be authosrised by the production director
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Electronic Point of Sale system (EPOS)
Benefits:
Accurate product by product sales data by shop, which could automatically update the general ledger at EOD
Potential to computerise inventory, allowing accurate margin analysis on a product by product basis. This would mean better inventory control and ordering across the shops
More focused promotions on products to increase sales
Quicker identification of low moving items and the ability to take appropriate action.
Accurate sales info in ‘real time’
Assumptions:
Cost of EPOS is acceptable to benefits
Staff are willing to train on complex system. (Cost of training)
Bookkeeper can be trained to reconcile EPOS data back to the takings accurately (May be initial cost)
General Ledger can be set up to include more complex reporting data. If not the biz will need to reconfigure GL (Costs)
All management reporting will need to be set up (cost)
EPOS software can be integrated with GL
Don’t forget to ‘evaluate’ recommendations against ethical standards and check they support them
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Where possible recommendations should also support one or more of the 3 sustainable principles
Economic growth -
Increasing long term company profits to benefit employees by using fair pricing policies / pricing agreements with preferred suppliers
Environmental protection
Conserving the environment and resources by moving to paperless integrated purchasing system will reduce paper use
Social equality
Considering social well being of people locally and WW by employing apprentices and training staff in suitable qualifications to benefit both Org and individuals
Also CSR
Source products from renewable sources & where local economies benefit
Fundraising activites by staff
Carbon neutral production plants and warehousing
Reducing waste by redesigning packaging
Whan asked to offer recommendations in exam should say consider ethical & sustainable issues especially when asked to justify why the recommendation should be made
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