Question
The Hockey Company operates 2 recreational courts. Each one of them has a concession stand that sells several snacks. Each concession stand has 2 employees.
The Hockey Company operates 2 recreational courts. Each one of them has a concession stand that sells several snacks. Each concession stand has 2 employees.
in order to be able to obtain volume discounts, the hockey company orders several snacks for both courts. Mr. Rick is in charge of ordering the concession stand snacks and products. he uses a secured closet storage unit across his office in the main building of the Hockey Company (In which he stores all snacks to be distributed). He inspects and verifies the closet periodically and when he sees a decline in the amount he proceeds to purchase and order more.
Any time that one of the two courts requires more stock, one of the employees would go to the main building and obtain the snacks. As Mr. Rick knows all employees and company members alike, he just usually gives the keys to the employees so that they can get whatever items they need in their respective court. Mr. Rick developed a check out withdrawal chart that is posted in the main entrance to this storage unit, in order to maintain accountability of all snacks withdrawals. on Rick's chart, Each employee annotates the number of packages or boxes that they need for their specific areas.
By the end of the year, Mr. Rick is worried that someone else has a key to the storage. As items seem to keep disappearing faster than in the beginning of the year. The last few months of the year, he has not been able to compare all withdrawals on his chart with candy purchases, and he is still dubious of the situation.
- Identify the control problems, and in your own words explain how to correct the inappropriate inventory procedures, at least from an analytical and accounting point of view (yet, simple)
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