Business Report Assignment (DOC)

Added on - 29 Apr 2020

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BUSINESS REPORTDavid’s Used Car Business ReportStudents' NameCourse TitleInstructor’s NameInstitutional AffiliationCity and StateDate of Submission
BUSINESS REPORTHaving read Mr David’s used car weird scenario i wish to attest that for real thereexist mountains of problems in the whole operations that require immediate possible radiclesurgery to save this business. Most of us will agree that the finished product item of sales aswell as spare parts he trades in are indeed very expensive hence if not properly accounted forthere may exist possible crisis resulting from poor inventory and sales management that mayfurther lead to business disclosure.I wish to point out that the three main problems that David used car business facesare;(a) Lack of accountability.(b) Lack of system, procedures, appropriate channel in our things ought to be done andfinally(c) Limitation of appropriate information thus barring good decision makingIf these three problems are dealt with thoroughly then David business will be safelyoperating.Accounting for inventory is of great essence to David venture by look of things I candefinitely state that there is no effective inventory control since there exist no physicalactivities trying to verify, authenticate and cater for completeness of the stocks i.e. the carsand the spare partsLucas(2006.Pg. 23). David Steele is however seen to control stockthrough numerous paperwork sheets but due to the cumbersome nature of the transaction heseems not able to fully control. This leaves a loophole for inventory loss, damage, missing oreven obsolescence. Paperwork means of control is not enough since it creates a chance forpersons to maliciously change and corrupt the figures in the paper hence stealing from thecompany. The paperwork means of accountability which is seen to be used all over is proneto get worn out, catch fire or even become blurring. These paperwork data most likely do nothave back up hence in case of these emergencies data relating to inventory gets lost hencelack of accountability.To curb David used cars inventory and whole system accountability there need tointroduce an accounting inventory system that captures stock both for cars as well as spareparts that will be factoring all the processes from acquisition or purchase to sales. I suggestthe configuration of the data to be just as similar as to that David uses. This will facilitateaccounting for stocks whereby random stock take should be conducted now and then toauthenticate the system stocks and that physically. This will fully control any aspect ofmalpractice as well as control the issue of FIFO hence obsolescence dealt with as well as
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