QUESTION 12 (10 marks)

Kuhio Stores Inc. sells electronic equipment. All sales are to retail customers. Although there are several stores in the chain, the inventory for each store is maintained separately. The stores are large warehouses, with merchandise stacked on shelves that customers can select for themselves. The companys assistant manager has several years of experience with the company, including taking inventory according to the companys policies, which include the following instructions:

1. Inventory count will be taken on December 31.

2. All inventory will be counted in teams of two persons.

3. All inventory will be recorded on the inventory count sheets.

4. When a team finishes a count sheet (each sheet has space for 5 different product items), the team will number the count sheet as follows: Team 1, Sheet 1; Team 1, Sheet 2; and so on.

5. Whenever a count sheet is full, it must be given to the assistant manager.

6. If any inventory appears dirty or damaged, it should be tagged with a special red tag.

7. The assistant manager will spot check the counts, and give the count sheets to the accounting department to reconcile to the inventory records.

8. Goods in the shipping area should not be counted, as these are sold.

Required: Identify 5 ways that you would improve the inventory-taking instructions planned for Kuhio Stores.