i

ACKNOWLEDGMENT

We, the researchers, would like to extend our gratitude to the following persons for their

utmost guidance and support:

Dr. Lino C. Reynoso for his enlightening lectures and directions about the proper writing

of this thesis paper;

Prof. Melziel Andag Emba, our adviser, for sharing his expertise to us and guiding us to

make this paper as accurate as possible;

Prof. Amir T. Auditor, for pondering our ideas and giving some extra advices regarding the

content of this paper;

Dr. Ma. Veronica Joy M. Binuya, Dean of College of Accountancy and Management, for

her comments and suggestions that further rectify the flow of our paper;

Our parents, for their genuine support and understanding while we, the researchers are

working on the content of this paper

And above all, our Lord, Father Almighty, for the strength, wisdom, courage and tenacity

that make us survive circumstances which tested our knowledge and patience while working on

this paper. Without His presence, we, the researchers, would not accomplish this requirement.

We dedicate this paper to all of you! To God be the glory!

 ii

RESEARCH ABSTRACT

Research Title : THE LEVEL OF ADHERENCE OF SELECTED

UNIVERSITY BOOKSTORES IN NATIONAL CAPITAL

REGION TO THE PRESCRIBED CONSIGNMENT

PRACTICES: A COMPARATIVE STUDY

Researchers : DAN PAUL C. BEGAS

RENZ MICO F. CORONA

CHRISTINE ANGELA B. CRUZ

ALLANIAH H. MACA-ALIN

RED CHRISTIAN L. PALUSTRE

Degree Conferred : BACHELOR OF SCIENCE IN ACCOUNTANCY

School : MANILA TYTANA COLLEGES

Adviser : PROF. MELZIEL ANDAG EMBA, CPA

Date Completed : APRIL 2016

No. of pages : 169 pages

Consignment is a topic in accounting that is barely tackled by the students which in con-

trary, it poses important notes needed to be jotted down. The researchers want to have a specific

study about the consignment topic and help other persons to raise awareness about the entire sys-

tem of consignment in where there are also issues that are needed to be address regarding some

material misstatements, updates of inventories and of course the internal control issues of con-

signment. The researcher also intends to gather the data about the bookstores consignment prac-
 iii

tices; and compare and contrast them. The objectives of the study are the following: (1) group

the bookstores according to years of operation; (2) determine the level of adherence of selected

university bookstores to the prescribed consignment practices; (3) determine if there is a differ-

ence in the consignment practices of selected university bookstores when they are grouped ac-

cording to years of operation; (4) recommend or communicate gathered information to

bookstores sampled; and (5) identify topics for future research.

The study made use of quantitative, descriptive approach to investigate the adherence of

selected university bookstores. The population is all university bookstores in the whole Philip-

pines that employ consignment. According to Commission on Higher Education (2015), there are

2, 180 universities in the Philippines. Some universities have bookstores have do not have. Some

have but not operated by the university itself, and some have operated by cooperatives. The fo-

cus of this research is for those owned by the university through the finance department. With its

wide scope, population was narrowed down using the following criteria, as purposive sampling

was used: (1) the university should be located within NCR area, (2) the bookstore should be

owned and operated by the university, (3) the student population must be at least 10,000 for the

current school year, and (4) the personnel (as representative) should have knowledge on both ac-

counting procedure and internal control of the university bookstores consignment practices. The

number of respondents who qualify for the criteria given is ten (10). Questionnaire will be uti-

lized as a tool for gathering data. It is an adapted questionnaire using different standards and

pronouncements about consignment accounting procedure and internal control. The tool consists

of eight parts; one for the demographics and seven for the consignment practices with five ques-

tions each form a combination of accounting procedure and internal control provisions. The first

part of the questionnaire will represent the first specific problem, What is the profile of selected
 iv

university bookstores in terms of years of operation? The second part of the questionnaire will

represent the second specific problem, What is the level of adherence to the prescribed con-

signment practices of university- bookstores in terms of: (a) delivery of goods; (b) risk of loss,

damages and confusions; (c) efforts to sell; (d) payment, sales and commission; (e) return of

products; (f) termination; and (g) legal items? Results from the first part of the questionnaire

were tallied together in a frequency table used to create charts. Results from the second part of

the questionnaire were tallied together by dimension. From thirty-five (35) questions, mean was

computed for every statement and every category of consignment practices, and the result served

as level of adherence of the sample to the prescribed consignment practices. Each analysis was

presented in a tabular form. Standard deviation were used to measure how each response is closer

or farther from the mean and how groups of response were scattered or compacted around the

mean. The non-parametric test used is Kruskall-Wallis where the Chi Square and asymptotic sig-

nificance value (below 0.05) determines the acceptance and rejection of hypothesis. The re-

searchers made use of software IBM SPSS Statistics 22 to generate the statistical results of the

gathered data.

The researchers had ten (10) respondents. Most of them were operating for 6-10 years. It

suggests that most of the respondents were just recently established due to increase in student

population that affirms to having a campus bookstore. Based from the results of the analysis us-

ing weighted means on the over-all consignment practices, it was determined that the composite

mean on this criterion was 2.68 which can be described as Adhere. It has a standard deviation

of 0.15. Moreover, it suggests that the bookstores sampled have Moderately High Level of ad-

herence with the prescribed consignment practices. Based from the results of the analysis using

Kruskall-Wallis H test to test the difference in the level of adherence on the prescribed consign-
 v

ment practices when grouped according to years of operation, it showed a Chi Square of 7.404,

6.191, 4.304, 3.333, 5.323, 4.837, and 2.943 for the first, second, third, fourth, fifth, sixth and

seventh consignment practice categories, respectively. The highest mean rank is for 11-15 years

group. Moreover, in overall, it showed a Chi Square of 6.935, and it also shows that there is no

significant difference on the level of adherence on the prescribed consignment practices when

grouped according to years of operation. It can be concluded that, in general, as the mean in-

creases, the standard deviation increases, and vice versa. In other words, there is an inverse rela-

tionship between the average scores of the bookstores sampled and the scattering of responses

that compose the average. The highest mean is obtained by delivery of goods, and payment, sales

and commission practices categories; while the lowest mean is obtained by efforts to sell practic-

es category. It can be concluded that delivery of goods, and payment, sales and commission prac-

tices categories are major internal and accounting control categories of a consignment business,

respectively. On the other hand, efforts to sell is a more business-discretionary consignment

practices category, since it involves each bookstores own marketing strategy.

A moderately high level of adherence, in overall, suggests a further improvement of con-

signment practices of selected university bookstores in National Capital Region. Bookstores by

themselves should study industry practices as this will serve as benchmark for their standing in

the consignment business. The output of the study can serve as a starting point of comparison.

These recommendations will be subjected to different bookstores discretionary decision on

whether these will be applicable to their business setting; however, as these practices are pre-

scribed it is highly recommended. We recommend continuing working on this research as one of

the goal of this research is to further achieve harmonization among different university

bookstores around the Philippines.

 vi

TABLE OF CONTENTS

Acknowledgement i
Research Abstract ii
Table of Contents vi
List of Tables viii
List of Figures ix
List of Appendices ix

CHAPTER PAGE

I PROBLEM AND ITS BACKGROUND

Introduction 1
Background of the Study 2
Theoretical Framework 3
Statement of the Problem 7
Hypothesis 8
Significance of the Study 8
Scope and Delimitation 9
Definition of Terms 10
II REVIEW OF RELATED LITERATURE AND STUDIES
Local Literature 14
Foreign Literatures 18
Local Studies 23
Foreign Studies 26
Relevance to the Present Study 30
III METHOD AND PROCEDURE
Research Design 31
 vii

Sample and Sampling Technique 31

Research Instrument and Technique 32
Data Gathering Procedure 33
Statistical Treatment of Data 35
IV PRESENTATION, ANALYSIS AND INTERPRETATION 38
OF DATA
V SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
Summary of Findings 90
Conclusion 95
Recommendation 97

REFERENCES 103
APPENDICES 107
 viii

LIST OF TABLES

TABLE PAGE

1 Pointing System to be Used to Measure Adherence 35

2 Table Format for Illustrating Frequency and Percentage of

Respondents' Profile 36

3 Frequency and Percentage Distribution of The Respondents

Profile According to Years of Operation 38

4 Level of Adherence of Selected University Bookstores to the

Prescribed Delivery of Goods Practices 39

5 Level of Adherence of Selected University Bookstores to the

Prescribed Risk of Loss, Damages and Confusions Practices 41

6 Level of Adherence of Selected University Bookstores to the

Prescribed Efforts to Sell Practices 43

7 Level of Adherence of Selected University Bookstores to the

Prescribed Sales, Payment and Commission Practices 46

8 Level of Adherence of Selected University Bookstores to the

Prescribed Return of Products Practices 48

9 Level of Adherence of Selected University Bookstores to the

Prescribed Termination Practices 50

10 Level of Adherence of Selected University Bookstores to the

Prescribed Legal items Practices 52

11 Level of Adherence of Selected University Bookstores to the

Prescribed Consignment Practices 55

12 Differences in the Level of Adherence to the Prescribed Delivery of

Goods Practices when Grouped According to Years of Operation 57

13 Differences in the Level of Adherence to the Prescribed Risk of

Loss, Damages and Confusions Practices when Grouped According
to Years of Operation 61

14 Differences in the Level of Adherence to the Prescribed Efforts to

Sell Practices when Grouped According to Years of Operation 65
 ix

15 Differences in the Level of Adherence to the Prescribed Payment,

Sales and Commission Practices when Grouped According to
Years of Operation 69

16 Differences in the Level of Adherence to the Prescribed Return of

Products Practices when Grouped According to Years of Operation 73

17 Differences in the Level of Adherence to the Prescribed Termination

Practices when Grouped According to Years of Operation 77

18 Differences in the Level of Adherence to the Prescribed Legal Items

Practices when Grouped According to Years of Operation 81

19 Differences in the Level of Adherence to the Prescribed Consignment

Practices when Grouped According to Years of Operation 85

LIST OF FIGURES

FIGURES PAGE

1 The Research Paradigm of The Research 6

2 Data Gathering Procedure Flow Diagram 33

LIST OF APPENDICES

APPENDIX PAGE

A Recommendations and Suggestions of the Panel Members 107

B Prescribed Consignment Accounting Questionnaire, Certificates

of Validation, Reliability Testing Results 110

C Kruskall-Wallis H Test Results 129

D Communication Letters 140

E Certifications 143

F Gantt chart and Line Item Budget 145

 x

G Photographic Documentations 148

H Curriculum Vitae 150

 1

CHAPTER I

The Problem and Its Background

Introduction

In a market where certain businesses must aim bigger sales, it is essential for them to

reach a wider horizon for their products to be sold productively. It is when consignment ar-

rangements take place. According to Merriam-Webster Dictionary, consignment means the act

or process of sending goods to a person or place to be sold. In another plausible definition, con-

signment means act of giving over to another person or agent's charge, custody or care any mate-

rial or goods but retaining legal ownership until the material or goods are sold. That may be done

for the purpose of shipping the goods, transferring the goods to auction or intending the goods to

be placed on sale in a store. It is also very important to take note that consignment relationship

between the "consignor" (distributor of the goods) and the "consignee" (receiver of the goods) is

different from that of the seller-buyer relationship.

In a realistic situation, seller transfers the ownership of the goods to the buyer, whereas

consignor transfers possession of the goods to the consignee for the purpose of selling them for

the consignor. In a simple note, meaning, the consignor still owns the goods. Contrary to the real

arrangements of consignment, if there is any case of doing acts not contemplated in the consign-

ment agreement and pocketing of the sales of consignment goods by the consignee, an act of

embezzlement has been therefore committed. Knowing the real meaning of consignment, con-

signment has also the standards to monitor the process of it. Many industries use this kind of

process including clothing, furniture, antiques, toy and even books. In fact, consignment is

properly observed in the selected university bookstores practices by selling the books of the

bookstore or publisher owning it.

 2

This study about consignment aims to recount the processes taking place between the

consignor and consignee and also compare if theories supporting consignment accounting and

the real-world practices happening between the two parties are parallel or of the same level. This

also aims to discuss the entire process since this topic has been barely studied by all. This gives

the researchers more area to study its entirety in different perspectives using selected university

bookstores as the subject of the study.

Background of the Study

Consignment is a topic in accounting that is barely tackled by the students which in con-

trary, poses important notes needed to be jotted down. The researchers want to have a specific

study about the consignment topic and help other persons to raise awareness about the entire sys-

tem of consignment. The researchers also want to know more about their real consignment ac-

counting procedures and internal control practices and match it to the theory stating it.

Aside from these reasons why there is a need to have a study about consignment, there

are also issues that are needed to be addressed regarding some material misstatements, updates of

inventories and of course the internal control issues of consignment.

The researchers also intend to gather the data about the bookstores consignment practic-

es; and compare and contrast them.

The objectives of the study are the following: (1) group the bookstores according to years

of operation; (2) determine the level of adherence of selected university bookstores to the pre-

scribed consignment practices; (3) determine if there is a difference in the consignment practices

of selected university bookstores when they are grouped according to years of operation; (4) rec-

ommend or communicate gathered information to bookstores sampled; and (5) identify topics for

future research.
 3

Theoretical Framework

A consignment agreement is an agreement between a consignee and a consignor

for the storage, transfer, sale and resale of goods delivered (Wikipedia, 2015). Businesses choose

consignment arrangements for many reasons. They may want to test marketplace demand for a

new product. Those stores can sell goods on consignment without investing initial capital in pur-

chasing them outright. Although a consignment arrangement maybe profitable for both retailer

and creator in the long run, it is essential that at the outset each party signs and maintains paper-

work sufficient to protect and satisfy its individual interests. A well-drafted consignment agree-

ment must provide for some form of inventory control and a clear allocation of the rights and

responsibilities of each party.

Incorporated in the agreement items are the provision instruction for each, but these are

general in nature. The need for a specific (accounting procedure and internal control) provision is

laid down by LegalZoom (2010); an online legal technology department that provides legal solu-

tions in various common categories including copyrights, DBAs, divorce, business formation,

trusts, wills, name changes, patents, power of attorney, pre-nuptial agreements, real estate leases,

trademark registration; the following are the items needed to customize and complete a consign-

ment agreement. It minimizes agreement confusion, misunderstanding and error, and clearly sets

forth the parties expectations and fulfillment of obligations.

Taking a look at each item, related accounting procedure and internal control practices to

be followed by the signing parties are laid down. Internal control and accounting procedure are

discussed simultaneously. Here are the specific provisions.

For the delivery of goods, before, during, and after the delivery, the goods should be

properly administered. Detail specification (number coding, serial numbers) should be included
 4

in the face of the goods. The initial list price should be delivered also to the consignee from the

consignor, together with the goods. On the receipt of goods, the consignee should record a mem-

orandum entry. Payment of freight should not be recorded in the consignees books.

For the risk of loss and damages, the consignor bears both the cost of delivering the

goods and the risk of loss or damages occurring during the transport and custody are recorded by

him. When the fault is due to the consignees negligence, then the loss should be recorded in his

books. The consignee, while in possession of the goods, should establish policies and procedures

on how to prevent loss and damages by taking care of the goods with the diligence of a good

father of a family.

For the efforts to sell, the consignee needs to promote the sale of the items consigned.

Proper positioning should be done to entice customer demand for the product. The consignee

should take into consideration how to increase the demand for the goods, either directly or indi-

rectly. Advertising expense should be properly recorded by the consignee.

For the payment, sales, and commission, parties have to agree on whether what percent of

commission is applicable to the following provisions. The commission should be properly rec-

orded in the consignees books together with those due to consignor. Since the commission is

directly associated with the sales, policies on improving sales should be implemented. Amount

collected should be properly counted and deposited to the finance department. The payment pe-

riod should be taken into consideration.

For the return of products, it comes in two ways: in the part of the consignee and con-

signor. In the part of the consignor as returnee, the consignor may compel the consignee for the

return of product. The consignee, on the other hand, may return provided by reasonable notice.

The parties should agree on the period for return. At the end of the term, it is automatic to return
 5

unsold goods. The goods to be returned should be properly segregated before the return date to

prevent confusion. Policies and procedures should be considered to safeguard assets to be return

to prevent additional loss and damages. A memorandum entry should be recorded by the con-

signee.

On the part of the consignee as returnee, return of product should not be applicable. No return,

no exchange should be implemented. If the exchange is demandable according to circumstances,

the consignor is obliged to replace without the consignees expense. Since, delivery controls

should be taken into consideration, possible future return should already be eliminated.

For the termination, either party can end the agreement. The consignee should disclose

and properly segregate those goods to be returned as a result of agreement termination, just like

the return of the products. The only difference is that return of products is contingent, while that

of termination is determinable. The consignee should record a memorandum entry for the re-

turned goods caused by termination.

For the legal items, it includes consignment period, notices, governing law and equitable

relief, consignor representation, and default. These items might affect the accounting procedure

and internal control practices of the consignee. But mostly, some items have no applicable inter-

nal or accounting control, with one of either, rather than both that was the initial consideration.

These items were added to give a more detailed test of the consignment practices accounting

procedure and internal control of the consignee.

 6

Selected university
bookstore that
Employs Recommendations
Consignment

Years of Operation
1-5 years
6-10 years
11-15 years
16 years and above

Consignment Practices Prescribed Consignment Practices

Delivery of goods Delivery of goods
Risk of loss, damages and confusions Risk of loss, damages and confusions
Efforts to sell Efforts to sell
Payment, sales and commission Payment, sales and commission
Return of products Level Return of products
Termination of Termination
Adherence
Legal Items Legal Items
to

Figure 1.The research paradigm of the research.

 7

The research paradigm consists of the selected university bookstore and their level of ad-

herence to the prescribed consignment practices by Legal Zooms consignment agreement. Ac-

counting procedure and internal control are both inherent in every item (delivery of goods, risk

of loss and damages, efforts to sell, payment and commission, return of products, termination,

legal items) listed above. Consignment practices of campus bookstores sampled will be com-

pared to the prescribed consignment practices to measure the level of adherence, and further rec-

ommend adherence. Those campus bookstores will be grouped according to years of operation

and any difference between the groups level of adherence will be measured. Most important is

that the prescribed consignment practices mentioned above take into the form of the question-

naire, devised by the researchers, which will be given to the selected university bookstores.

Statement of the Problem

The study aims to compare the consignment practices of selected university bookstores in

National Capital Region.

Specifically, the following research queries will be answered:

1. What is the profile of the bookstores in terms of years of operation?

2. What is the level of adherence of selected university bookstores to the prescribed consignment

practices, in terms of:

2.1. Delivery of goods;

2.2 Risk of loss, damages and confusions;

2.3 Efforts to sell;

2.4 Payment, sales and commission;

2.5 Return of products;

2.6 Termination; and

 8

2.7 Legal items?

3. Is there a significant difference between the levels of adherence to the prescribed consignment

practices of the selected university bookstores when they are grouped according to years of oper-

ation?

Hypothesis

Based from the problem of the study, the research hypothesis will be formulated and test-

ed at the level of significance of 0.05:

Hypothesis I

There is no significant difference between the levels of adherence of the selected univer-

sity bookstores to the prescribed consignment practices when they are grouped according to

years of operation.

Significance of the Study

The significance of this study is for the stakeholders to be aware of the consignment prac-

tices of selected university bookstores in terms of accounting procedure and internal control. The

following stakeholders are: Finance department and bookstore of universities, the academe and

the students; the consignor (distributor) and future researchers. The benefit of gaining knowledge

about the level of adherence to the prescribed practice existing in our industry of selected univer-

sity bookstores is to be compared and contrasted with the existing literatures researched and col-

lected by the researchers.

To the selected university bookstores sampled (generally the Finance department)

The result of this study is relevant to the selected university bookstores to determine level

of policy needed to be implemented in terms of internal control and accounting procedures. In

addition, this helps the bookstores look at the industry average, and adapt or replicate the best
 9

practices to be recommended by the researcher. Proper training and orientation can be done to

ensure that prescribed practices are being adhered perpetually.

To the consignor (or distributor)

The benefit of the consignor will enable them to assess the selected university bookstores

where they consigned their books. The assessment serves as a measurement of their decision

whether to consign their books on a certain university or not. It will also serve as gauge for

monitoring bookstores performance.

For the academe specially in accounting (and students)

The results from this study will serve as basis for having a more extensive knowledge

about the ins and outs of the consignment business setting and inventory management. Students

will have a background on the real world consignment business, as those written on the books

are theoretical only.

For the Future Researchers

The delimitation of this study due to the incapability of the researchers can be conducted

by the future researchers. They can think of other grouping variables and other dimensions of the

consignment business, aside from accounting procedures and internal control. Will geographical

location affect the level of adherence? Or will number of books consigned affect it?

Scope and Delimitations

Selected university bookstores that uses consignment, as another part of the criteria, are

studied; represented by its selected personnel provided by the laid out criteria. Practices of uni-

versity, other educational institutions and independently-owned bookstores and any difference of

practices between the two (university and others) are not studied.
 10

These bookstores should be located within NCR area. Bookstores located outside are not

studied and any difference of practices between the two (NCR and outside) as well.

The paper focuses on the consignee party of consignment accounting. Practices of con-

signors (distributors and/or publishers) and any difference of practices between the two (con-

signor and consignee) are not covered.

Those personnel who knew both the accounting procedure and internal control of con-

signment of their respective university bookstore are likely to fit with the implicit objective of

the studyto gain knowledge first hand. Those who know either the accounting procedure or

internal control practice, and any difference between the two (those who knew both and those

who not) are not studied.

Another criterion set by the researchers is, the university must have a student population

of at least 10,000 in the current school year. University bookstores having a below the required,

and any difference between the two (with at least 10,000 and with 10,000 below) are not studied.

Due to the criteria set by the researchers, there were only 10 universities available and

qualified to be the respondents of the study. Only 1 (one) respondent per university serves as the

representative and will answer the questionnaire given.

Definition of Terms

This paper is a quantitative research about consignment accounting. The terms from the

title, statement of the problem and research paradigm were selected to be defined. It contains

mostly technical terms which were used only by the professionals in the accounting field and in

the business world. Defining those uncommon terms is necessary for the full understanding of

the topic and to make the research much clearer to the non-accounting readers.
 11

The following were defined for clarification:

Accounting Procedures

These are methods and procedures which an organization's management institutes

to(1) safeguard assets, (2) authorize transactions, (3) monitor disbursements, and (4) ensure

the accuracy and validity of accounting records.

Consignee

In a contract of carriage, the consignee is the entity who is financially responsible (the

buyer) for the receipt of a shipment. Generally, but not always, the consignee is the same as the

receiver.

If the distributor dispatches an item to the bookstore via a delivery service, the distributor

is the consignor, the bookstore is the consignee, and the deliverer is the carrier.

In this particular study, the consignee is the university-based bookstore

Consignment

Consignment is the act of consigning, the act of giving over to another person or agent's

charge, custody or care any material or goods but retaining legal ownership until the material or

goods are sold.

Just like the others, bookstores consignment arrangements typically are in effect for a set

period of time. After this time, the goods are returned to the distributor. Typically, the consignor

receives a percentage of the sale (sometimes a very large percentage). The consignment per-

tained here to book consignment, because other supplies sold by the bookstore include those not

in consignments, rather by direct purchase. Conversely, consignment does not end inside the

bookstore premises only, rather also within the mother section/department with the bookstore as
 12

its extension. Accounting procedures are done by the materials management section/department,

while internal control should be followed by the bookstore operations, as created by the former.

Consignor

The consignor, in a contract of carriage, is the person sending a shipment to be delivered

whether by land, sea or air. Some carriers, such as national postal entities, use the term "distribu-

tor" or "shipper" but in the event of a legal dispute the proper and technical term "consignor" will

generally be used.

If distributor sends a widget to bookstore via a delivery service, distributor is the con-

signor and bookstore is the consignee. In this study, the book distributors are the consignors.

Internal Control

Internal control, as defined in accounting and auditing, is a process for assuring achieve-

ment of an organization's objectives in operational effectiveness and efficiency, reliable financial

reporting, and compliance with laws, regulations and policies. A broad concept, internal control

involves everything that controls risks to an organization.

It is a means by which an organization's resources are directed, monitored, and measured.

It plays an important role in detecting and preventing fraud and protecting the organization's re-

sources, both physical (e.g., machinery and property) and intangible (e.g., reputation or intellec-

tual property such as trademarks).

Selected university bookstores

These are bookstores that are controlled and owned by the universities which, in actual

practice, employ consignment in their operations. Selected university bookstores across NCR

region are interviewed if they manage a bookstore that sells books among students. It is an ex-
 13

tension of the universitys finance department/directorate. This are bookstores that qualify from

the criteria used in purposive sampling.

 14

CHAPTER II

Review of Related Literature and Studies

Local Literature

According to Valix & Peralta (2014), a consignment is a method of marketing goods in

which the owner called the consignor transfers physical possession of certain goods to an agent

called the consignee who sells them on the owners behalf. Consigned goods shall be included in

the consignors inventory and excluded from the consignees inventory. When consigned goods

are sold by the consignee, a report is made to the consignor together with a cash remittance for

the amount of sales minus commission and other expenses chargeable to the consignor.

According to DOH (2015), they have defined consignment as the arrangement where the

following requirements are present: (1) Delivery of goods by the owner (consignor) without sale,

to a government agency (consignee) (2) Consignee must try to sell the goods and remit the price

of the sold goods to the consignor. (3) Consignee accepts without any liability except failure to

reasonably protect them from damage. (4) At terms not disadvantageous to the government. Ac-

cess to pharmaceuticals is affected by different factors such as the prices of medicines, economic

capacities, presence of healthcare providers, availability of health related infrastructure (e.g. drug

outlets, clinics, and hospitals) regulatory environment and cultural processes to the government

in order to improve health outcomes and foster national development. In order to bridge the gap

between the mandate to deliver basic health services to the public and the inadequacy of re-

sources, the Department of Health (DOH), has designed a drug consignment schemes for the

purpose of adhering to the basic principles of transparency and competitiveness.

 15

In the article Selling strategy for newbies: consign your product by The Philippine Online

Chronicles (2011), consigning means letting others sell for you. In this kind of arrangement,

goods change hands but money does not at least not yet. You consign your product when you

deliver it (or it is picked up) by another business, usually a retailer or vendor, with the under-

standing that you will get paid only after it has been sold. In a manner of speaking, you are lend-

ing your products to a vendor usually a retail store owner who typically displays your wares

and includes them in his product lines. If the merchandise sells, he pays you the agreed percent-

age and other costs. The arrangement is advantageous to both consigner you and the consign-

ee the vendor or retailer. Consignment provides you with a sales outlet for your products, mi-

nus the rental costs, maintenance expenses, utilities, labor and countless other expenses that you

would have incurred if you had your own store. On the other hand, retailers and vendors wel-

come consigned goods as this allows them to stock up on products without tying up their money

in inventory uncertain to be sold. Offered even an unknown product or brand on consignment, a

retailer would tell himself: I have nothing to lose. It is not of course the most ideal situation

for you as producer. You must have enough cash on hand as you wait for your goods to be sold

at your consignees outlets. In the end, you may find yourself swamped with piles of unsold, re-

turned, possibly spoiled merchandise. With no money invested, your consignees may not have

felt obligated to push your products. However, consignment has served the purpose of many mi-

cro and small entrepreneurs.

According to Tan (2010), one of the methods on distributing the books in the Philippines

is the consignment method. It's different from simply selling the books to the bookstore because

aside from all the hassles of consigning a book, unsold copies of the book will be returned. This

means that there is little financial risk on the part of the bookstore but a huge one on the publish-
 16

er. What if the books don't sell? Then the publisher doesn't earn a thing from his endeavors.

What if the books sell little? Then both the bookstore and the publisher earn little profit. What if

the books sell really well? The bookstore earns a lot and asks the publisher to consign them more

copies of the book if the publisher is lucky. If not, the bookstore earns a lot and the publisher

goes through some red tape to claim his money. He mentioned that there's little risk on the side

of the bookstore. What part is risky? If all the financial investment is on the part of the publisher

and what the bookstore gets is merely the profits, what's the risk for them? Well, in a bookstore,

shelf space is at a premium. Every book you put on the shelf is another book you don't put on the

shelf. If the consignee's books sell well, that's well and good. But what if it doesn't? Another title

might have generated more profits than what the consignee was offering. That's why there's risk

on the bookstore's part as well. Is it as huge as the publisher's? Probably but then again, the pub-

lisher isn't in charge of a large, bookstore retail chain. Most local books (and not imported inter-

national books) make it to bookstore shelves because they are consigned. It makes perfect sense

for the bookstore and the publisher takes a brunt of the risks (which is why publishers sometimes

demand so much from authors--it's their money on the line). He was talking about publishers

earning from their endeavor. So how much money do bookstores place on consigned books?

40% to 60%. 70% even if you lack negotiating skills. What that means is that if a local book

costs P200 in big bookstore chain, anywhere from P80 to P140 goes to the bookstore. Of course,

around 10% to 20% more can be shaved off if the publisher has good relations with the

bookstore, has a good track record with them, are friends/relatives with the owner, bribed them

with dinner, arranged a PR event for them, etc. There are various methods to get in the good

graces of the big bookstore chains and if you're smart, you'll use them. But the fact of the matter

is, 40% off the suggested retail price at best is still 40% off the retail price. As a publisher, you'll
 17

have to accept that around half of what consumers pay won't go to your pockets but to the

bookstore. Having established how much profit a bookstore acquires from consigned books, you

can estimate how much discount a publisher will give the bookstore if the latter buys their books.

That's anywhere from an additional 10% to 20%. So assuming you got a good deal with the

bookstore and you're consigning books to them at 40%, if you want them to buy the books, you'll

have to sell at around 60%.

According to Philippine Star News by Joven (2012), The Iloilo Provincial Board recently

approved a resolution implementing the medicine consignment system for district hospitals in the

province to ensure availability of medicines in all pharmacies of these hospitals. Provincial Ordi-

nance No. 2012-095, sponsored by PB Member Macario Napulan, covers the Iloilo Provincial

Hospital and 11 district hospitals in Iloilo. Under the ordinance, goods or items (drugs, medi-

cines, supplies, laboratory equipment, reagents and legal items) that the supplier delivers would

go through the consignment system, said Napulan, health and sanitation committee chairman.

The Hospital Consignment Board will conduct the accreditation of suppliers, manufacturers and

dealers of the items to be consigned. Those who were previously accredited by the Provincial

Hospital Consignment Management Board, and presently participating in the procurement pro-

cess, will also be considered for accreditation by the HCB. Consigned items will be based on the

submitted list of items from the therapeutic committees and other service areas (laboratory, radi-

ology, laundry and admin) and from concerned offices and divisions of health maintenance or-

ganizations (HMOs). The prices of the consigned items should not be higher than the last record-

ed procurement price of the same item for a maximum period of six months, or the reference

price should make use of the prevailing price of the Western Visayas Medical Center and/or the

canvass price made by the Technical Support Service Division of the Consignment Management
 18

Board within the same period. In cases of consignments for PhilHealth beneficiaries, the selling

price of the items should not be higher than the prevailing price of the same items in local private

pharmacies and outlets. Income generated sales of the consigned items should be used for the

payment of dispenses or utilized consigned items after the appropriate inventory is conducted. In

addition, revenue generated from the program should be deposited directly to the hospital general

fund. For quality assurance, the consignments items may be subjected to random sampling, in-

spection and testing by the consignee and other appropriate support agencies. The consignment

system is a method of assuring the availability of stocks wherein the consignor entrusts its goods

to the provincial and district hospitals pharmacy or other participating division and offices of the

consignees for sale. The consignor shall be paid only for the actual quantity consumed using the

money generated from the sale of the consigned goods within the agreed period of time.

Foreign Literatures

The sales activity of any business can be organized in different ways. With the customers

spread all over, the business entity cannot afford to have only minimum selling points nor can it

have its own resources to have the outlets all over. The business volumes cannot be limited in

any case. The core competence of a manufacturing company is to produce a good quality prod-

uct. It creates a network of its own outlets, dealers, commission agents, institutions etc. to dis-

tribute its products efficiently and effectively. Thus the selling may be handled directly through

own salesmen or indirectly through agents. In case of direct selling, the company usually has de-

pots all over. The stocks are transferred to these depots and from their finally sold to ultimate

customers. This involves huge expenses and problems of maintaining the same on a permanent

basis. Hence, the firm could appoint agents to whom stocks will be given. These agents distribute

the products to ultimate customers and receive commission from the manufacturer. One such
 19

way of indirect selling is selling through consignment agents. The relationship between con-

signor and consignee is that of Principal-Agent relationship. Consignment takes place where

goods are transferred from the owner (consignor) to an agent (consignee) for the purpose of sale

by the consignee on behalf of the consignor. It is important to understand that the relationship of

principal (consignor) and agent (consignee) exists. Because of this agency relationship, owner-

ship of the goods does not transfer to the consignee. The consignee, as the selling agent, is enti-

tles to a commission for selling the goods; expenses may be incurred by both parties; and period-

ically or on completion of the consignment, settlement is effected between the parties. If any

goods remain unsold then they are generally returned to the consignor. Consignment is a fairly

common commercial transaction, perhaps more common than many people may think. (Ajan-

than, 2014)

As cited by Kaynak and Seyoum (2014), Consignment Sales is defined as a method in

which the exporter sends the product to an importer on a deferred payment basis; that is the im-

porter does not pay for the merchandise until it is sold to a third party. Title to merchandise pass-

es to importer only when the payment is made to the exporter. Consignment is rarely used be-

tween unrelated parties, for example, independent importers and exporters (Goldsmith, 1989). It

is best used in cases involving an increasing demand for a product for which a proportioned

stock is required to meet such need (Tyler, 1994). It is also used when a seller wants to test-

market new products or to test the market in a new country.

According to Bonomo (2013) in theory, a consignment inventory management program

works best at the manufacturing level when implemented as a vendor managed strategy. By de-

veloping a collaborative relationship with parts supplier can determine which items should be

placed on a consignment plan. Consumable inventory works best, namely the components, fas-
 20

teners, and packaging materials constantly used to accomplish your production. With consign-

ment inventory management programs, an agreement is established, which outlines each partys

liability obligations, the part prices, and stocking amounts. Using enhanced communication and

software connections that match existing purchasing systems, supplier transfers inventory ship-

ments to your facility yet retains ownership of those parts until they are consumed on the assem-

bly line. Bar code scanners and other tools keep accurate data on consumption levels, allowing

supplier to orchestrate replenishment shipments efficiently, issue purchase orders on a pre-

arranged schedule, and effectively manage his own stock levels to keep facility adequately sup-

plied. Implementing a consignment inventory management program at manufacturing facility

offers numerous cost saving advantages, and should be viewed as a value added service, the ben-

efits of which continually compound over time. In addition to optimizing cash flow with an im-

mediate infusion of capital, this inventory strategy offers operational improvements by decreas-

ing production times, labor costs, and administrative expenses. Consignment inventory manage-

ment eliminates line down occurrences caused from stock out situations, giving the reliance to

depend on those items always being available for usage, and arrange production schedules ac-

cordingly. It also allows to respond quickly to changes your own customers requests, providing

a level of service that competitors cannot. Because of the increased communication between

company and supplier, the labor involved in receivable inspections is significantly reduced.

Moreover, the soft costs inherent in handling and carrying stock is removed, rejuvenating profit

margins. Vendor managed inventory programs that include a consignment inventory manage-

ment strategy offer manufacturers a myriad of progressive operational advantages, streamlining

production times, while simultaneously reducing the tedious administrative tasks and inspection

processes that consume valuable resources.

 21

According to Rettger (2010) at the heart of the Chelsea Green consignment contract is an

agreement between the bookseller and the publisher on the programs goals: to increase sell-

through of titles, allow booksellers to pay for books as they are sold, and further minimize re-

turns. Booksellers must order enough Chelsea Green titles to fill a dedicated space and agree to

keep titles prominently displayed within their regular categories. Based on monthly sales reports

from the bookstore, consignment invoices are generated and must be paid by the 15th of the

month. Chelsea Greens minimum consignment order is five books, any combination of titles;

the discount is 45 percent plus free freight. Titles that show little or no movement after an

agreed-upon time become candidates for shared markdowns. At the end of the initial consign-

ment agreement, which is for a six-month trial, the bookstore and Chelsea Green review and

evaluate the program. In the recent experiments in consignment, ABA CEO Oren Teicher said,

We think its extremely encouraging that publishers are taking a fresh look at trade practices

and asking themselves whether there are potentially profitable new ideas to be explored. In our

discussions with publishers, ABA has encouraged them to examine such new avenues as con-

signment, which we believe have the strong potential of selling more books, a definite win-win

for publishers and booksellers. The consignment model is going to become very common very

quickly, said Chartrand, who is in talks with other publishers about establishing similar partner-

ships. It addresses such an important, fundamental issue for independent booksellers, which is

cash flow. I am having discussions with two other publishers to implement consignment deals,

said Morrow. I hope to have half a dozen partnerships worked out by next year. It is time for the

industry as a whole to give consignment a fresh look.

In the Writers Weekly, Hoy (2011) said that an increasingly popular scenario is when a

bookstore buys the books on consignment. Under consignment, the bookstore doesnt pay for the
 22

books until/unless they sell. Bookstores literally have nothing to lose (they dont even have to

pay anything up front) and authors are getting their books into local stores. Many of these au-

thors get their books stocked on the local author shelves at their neighborhood bookstores and

can even get their books on the front counter, depending on how well they promote themselves

to the stores owner or manager. Of course, consignment works for many different types of re-

tailers, not just bookstores. Some authors simply stop in once a month, check to see how many

books are left on display, and invoice the store for the books that have sold. Other authors are

kept abreast of sales by the store manager, and receive checks on a regular basis. Of course, this

would only happen with a very small store. The large stores have too much red tape in their ac-

counting departments for the store manager or a clerk to track sales of specific items. The down-

side of a consignment contract is books can get damaged by customers thumbing through them,

and are sometimes damaged to the point where they are unsellable. So, if the author must collect

unsold books at some point to sell elsewhere, they may not be fit to sell. Occasionally, an author

gets stiffed by a store on a consignment deal so the recommendation is by only dropping off a

handful of books, not an entire case. Offering a consignment deal to the store will probably give

the best chance of having carry it. Simply offer to sell it on a consignment basis, and check in

every month or two to see if any have sold. Bill them for any copies that are no longer on the

shelf. The appeal to a store owner or manager is that they need to take almost no action, and

spend no up-front money, to get the books on their shelf. The easier this transaction is for them,

the better chance of the books being stocked by the store. When delivering the books, two copies

of a consignment agreement must be brought. The agreement should contain a clause that speci-

fies the bookstore will pay you for all copies that no longer appear on their shelf. Otherwise, they

could claim copies were stolen, and not pay for those. They could also claim copies were
 23

damaged and discarded, and try to not pay for those. Anything that happens in that store to

your books is not, and should not, be the suppliers responsibility.

Local Studies

In the study of Javier et. al (2010), in a duopolistic market where goods are consigned

under a Vendor Managed Inventory setting, the two manufacturers engage in a price competition

to capture the larger percentage of the market. Since they are able to dictate the market price of

their goods, the retailer is not in any way able to change the prices set by the respective suppliers.

When this happens, the retailer acts as a mere selling space of goods and point of competition

among suppliers. The intensity of competition is investigated where price competition with the

consideration of brand substitution is analyzed with respect to the decisions that are made by

each manufacturer. In considering the possible action and reaction scenarios that could take place

across different inventory cycles, significant factor interactions are identified and analyzed as to

how it affects mean profit and pricing and reorder decisions available to the manufacturer. As

manufacturer make discounting decisions in terms of price and time of discount, and reorder

point quantities across time, the optimal decisions as well as its sequence of implementation can

be viewed as sequential decision process that can be modeled as a Dynamic Programming mod-

el. Competitive measures as well as eventual counteractions by competitors were simulated, sim-

ilar to how other studies considered action-and-reaction of players in the competition.

In another study of Salvador et. al (2010), their studys results revealed that the existing

accounting systems of their selected school for cash receipts and disbursements, receivable, and

revenues were all unsatisfactory while the debts and expenditures needed improvement. The in-

ternal control system installed on accounting system for cash receipts and disbursement and debt

also needed improvement. The internal control for revenue was outstanding and unsatisfactory
 24

for expenditure. The existing system for cash managements on its cash receipts and disburse-

ments both needed improvement while in the receivable; petty cash fund, debts, and expenditure

were all unsatisfactory. The existing system for revenue was satisfactory. The internal control

system particularly on cash receipts, receivable, debts, revenue, and expenditures needed im-

provement. The internal control for cash disbursements and petty cash fund were both unsatisfac-

tory. The existing system for management on its cash receipts, cash disbursements, receivable,

debt, revenue and expenditure were assessed to be the strength in the current existing practices

on fund and revenue management of the school. The internal controls system installed on fund

and revenue management system particularly on cash receipts, disbursement, petty cash fund,

receivable, debt, revenue, and expenditure were also considered as the strength of the institutions

current controls practices on fund and revenue management systems. In addition, the following

were found to be the adoptable practices of related school to enhance the current system about

Fund and Revenue Management System: imprest system for cash receipts and disbursement;

concentration banking to fasten the collection scheme; the credit function of the institution sepa-

rated from the revenue function; establishment of adequate allowance for probable losses from

delinquent accounts; write-off of delinquent accounts thru approval by the Board of Trustees;

procedures of probable future collection from written off accounts; pre-numbered documents

used for billing; written procedures regarding the recording and reconciliation of revenue gener-

ating transactions; procedures to ensure that fees billed are adequate to recover all direct and in-

direct costs; the person responsible to the account/notes receivable is independent from the credit

manager; preparation of cash budget that begins at least six months before the beginning of the

next fiscal/calendar year; preparation of the budget that involved all the individuals affiliated

with the institution; paid invoices that are stamped PAID to prevent the duplicate payment.
 25

In another study of Abacahinet. al (2012), they have researched about the Edmar Marketing

which is currently does its sales and inventory manually. As such, it takes time to locate certain

files for reports and the entries in the monitoring sheet are not clear, thus, creating confusion.

The project is an automated Sales and Inventory System which has an array of functions involv-

ing sales and inventory that can be of very big help to the company. It aims to make files updated

and easy to locate, hence, data and information become accurate and orderly which may provide

a faster alternative or means in doing the inventory. The system inventory may also be harder to

cheat because the coming in and going out of stocks are recorded in the system. The warehouse

personnel is more accurate in their reports and can save more time by using the system. Since the

system user has saved time, the personnel in-charge can then be more productive in terms of out-

put which can be beneficial to the company.

Diva and Trinidad (2011) conducted a study to enhance the existing pharmacy inventory

control system of Malijan Diabetes Center (MDC) to have a better inventory management and to

reduce risks of errors and fraud. It sought to identify the enhancement and design that MDC

could adopt for a more effective and efficient inventory system. Specifically, the study aimed to

determine the current policies and procedures of MDC to account for their pharmacy inventory;

verify strengths and weaknesses of the current inventory control system, provide appropriate

measures to be adopted to minimize risks from the weaknesses and threats; and identify invento-

ry management and accounting concepts, principles, and techniques that should be applied to the

enhanced inventory control system. The study used descriptive research design. Interview with

employees was conducted and internal control questionnaire was given to the clients to gather

the needed data. Finally, observations, walkthrough, and nonparticipant were conducted to verify

the results of the interview and questionnaire. Results revealed weaknesses of the current system
 26

through SWOT analysis. Therefore, the study proposed different methods from accounting and

management concepts to reduce the threats from these weaknesses. The analysis was suggested

as a method of classifying the inventory of the pharmacy. Moreover, the perpetual inventory sys-

tem was suggested to avoid expensive periodic inventory counts. Furthermore, the use of differ-

ent accounting forms like Purchase Management, Purchase Order, and Receiving Report as well

as close supervision were recommended to reduce the weaknesses found in the pharmacys cur-

rent inventory system.

In the study of Picazo (2012), unlike Botikang Barangay which are supplied solely by Phil-

ippine International Trading Corporation, and must pay for every delivery they receive. The Ge-

nerics Pharmacy does consignment for each franchisees, which can also get medicines from oth-

er sources. Under consignment, the supplier (consignor) provides an inventory of drugs to a re-

tailer which pays only the items that is able to sell. This is an important distinction between

BNBs and For-profit franchisees which confers on the latter a distinct advantage. The Generics

Pharmacy also tends to advertise more, thus attracting more customers.

Foreign Studies

Xiu (2011) studied that many researchers have recently given considerable attention to

coordinating the issue between suppliers and retailers in the supply chain. However, most re-

searchers assume that the chains market demand is either price sensitive or constant. Conse-

quently, this work considers coordinating a single supplier-single retailer distribution system.

Consignment inventory is a mechanism of supply chain management. Adopting consignment ar-

rangement companies can dramatically lower company costs and drop prices to increase demand

for products, attract new customers and even enter new markets. A consignment arrangement

makes no payments to the retailer until the item is sold; therefore the retailer has no money tied
 27

up in inventory and bears no risk associated with demand uncertainty. The supplier possesses

market condition information directly, mitigating bullwhip effect in the supply chain. This in-

creases firms measurement accuracy of the retailers selling efforts, reducing demand uncertain-

ty, and enabling the supplier to better match supply with demand.

In the study of Han (2013), consignment stores are, locations where consigners give

their gently used itemsless than three years and in good conditions, and other parties pur-

chase those consigned items. If the items are sold within 90 days, some percentage of sales prof-

its are taken by the store, and the rest of money go to consigners. If the items are not sold during

the period, items are returned to consigners or marked down. As defined here, consignment ap-

plies two types of peopleconsigners and customers. Consignment store owners not only make

efforts to maintain good relationships with customers, they also maintain relationships with con-

signers. They are both important, since consigners are people who bring quality items, and cus-

tomers are people who purchase these items, and finally produce profits. The store deals with

items that have brand quality, wearable, in good condition, and less than 2-3 years old. Although

consignment store owners have also the freedom to choose their items like vintage store owners,

sometimes their choices are limited to only what consigners bring to the store. They also provide

quality services to community, consigners, and customers, offering entertainment and esthetic

experiences.

In another study of Ramrakhyani (2010) Supplier, Buyer and Retailer are the three most

important aspect of a Supply Chain with inventory as the common link connecting the three.

Since the advent of Supply Chain Management System, researchers are involved eradicating the

problems incurred in the smooth functioning of the supply chain system and are exploring ways

to increase the overall profitability of the system. VMI (Vendor Managed Inventory) System
 28

with CI (Consignment Inventory) offers a solution for many manufacturing businesses. In this

research work the focus is made on both the type of inventory management agreement systems.

To gather information an empirical study was done at Marquardt Switches Inc. and interviews

were conducted with the Production and Supply Chain Engineers. Extended Literature review

was done to know the latest updates in the field of study. This research was more focused on

studying different Inventory Supply Chain Models and compares the profit function of Supplier

and Buyer working in a VMI-CI environment and to show the profitability of the overall Supply

Chain Management System in a Manufacturing Industry. More work was carried out to extend

the study done on "Supply Chain Model of Vendor Managed Inventory" [Dong and Xu, 2002] by

incorporating the mathematical model with the benefits associated with 'Payment Delays' and

'Time Value of Money' in the VMI System.

As cited in the study of Gilde (2014), another use of the VMI is to include consignment

inventory policy. There has over the past decades been an increasing amount of researcher that

has started to concern the importance related to profitable vertical relationships between seller

and buyer. From before and little back in time companys where working in short terms perspec-

tive if we compared it with the normality of today. The most important factor was price and how

there was possible to reduce the price on articles to get the cost down. Today there are more fo-

cus towards strong integration, collaboration and information sharing between both parties to

make profit, and be able to reduce cost so everybody gain profit, and also leaning towards strong

relationship with fewer and more strategic suppliers. (Valentini and Zavanella 2003) Consign-

ment stock will in this case assume it will work under the assumption that the vendor will in-

crease the service level on the warehouse for seller according to an optimal service level and to

reduce the probability of a stock-out situation. Recent studies show that there can be a lot of
 29

advantages of using VMI with consignment stock policy, so there are made a list of advantages

and disadvantages considering the 17 possible implementation of VMI policy with CS, trying to

highlight some important factors to be aware of.

According to the study of Verheijen (2010) in general, the central idea is that total chan-

nel costs for Vendor Managed Inventory-consignment in a supply chain channel between a buyer

and vendor decrease over both the short and long term, but such a decrease may fall short of the

centrally coordinated supply chain (Dong and Xu, 2002). In the Dong and Xu study, VMI-

consignment arrangement is compared to a base case in which the buyer dominates and deter-

mines the order quantities and a proposed transfer price according to local profit maximization.

The benefits of VMI increase with increasing difference between the vendors and the buyers

setup costs for a transaction and thus their preferred order-sizes. Evidently, implementation of

VMI with consignment is always beneficial to the buyer as the inventory holding costs are ab-

sorbed by the vendor. However, when the transaction setup costs for the buyer and vendor are of

the same magnitude, it is possible that implementation of VMI-consignment leads to a decrease

of the vendors profits in the short term. In the long-term, however, reduction in overall supply

chain channel costs results in a competitive edge, leading to increasing sales volumes, so the

vendors profits could increase. A special assumption in the Dong and Xu study is that the pro-

duction costs increase convexly in quantity. Note that other efficiency gains attributed to VMI

such as improved coordination and forecasting, leading to reduced safety stocks and more de-

grees of freedom for vendor to manufacture or deliver have not been taken into account in

this study.
 30

Relevance to the Present Study

The head part of this chapter deeply explains the system of consignment which is also

known as indirect selling. The Principal-Agent Relationship or indirect selling definition and

how they function is shown thoroughly. Deferred basis of payment is effective for this system

where the payment is dependent on the third party as commission will be given to the consignee.

In a bookstore and publisher relationship where the bookstore is the consignee and the publisher

is the consignor. Furthermore, it is said that consignment system is the best for meeting the in-

creasing demand by the market for the benefit of the involving parties (supplier, buyer, and ven-

dor). Also, it offers operational improvements such as cost saving, decrease in labor costs, pro-

duction times, and administrative expenses as equated fir a higher profit. Consignment deals

work for many different types of retailers, not just bookstores and it becomes so much common

very quickly. These discussions are relevant to the study specifically in accounting relations and

internal controls. Thus, the rules, agreements, and step-by-step system, and possible scenarios

between the two related parties are also stated. The AIS relations come in pace in settling bar

codes on a certain inventory like books. It helps the consignment to be easier, systematic, and les

error-occurring.

The chapter also discusses the risks may be encountered by the suppliers and retailers. It

is said that the scenario determine who will take a higher risks. On the market, the risks include

the price competition as it affects the mean profit, pricing, and reorder decisions for the manufac-

turer.
 31

CHAPTER III

Method and Procedure

Research Design

The study made use of quantitative, descriptive approach to investigate the adherence of

selected university bookstores. It was quantitative since it was concerned with the numbers and

frequencies with which the level of adherence of the bookstores to the prescribed consignment

practices can be measured. The response given by the representatives of selected university

bookstores represented that of the population.

The data obtained were used as information about the selected university bookstores

consignment practices. As planned, one way of extending knowledge about selected university

bookstores that employ consignment was to observe and evaluate them. At the end of the re-

search, the results were communicated to the management of the selected university bookstores.

Since sampling of the population was used, the results of the study were assumed as de-

scribing the population of interest (all university bookstores around the Philippines that employ

consignment). The sample used was also assumed as representative bookstores of all bookstores

around NCR region in terms of their consignment practices.

Sample and Sampling Technique

The respondents of the study were the selected personnel of selected university

bookstores as they are the ones overseeing the consignment practices. They have enough

knowledge for their being positioned in the organizational structure. Selected university

bookstores and their representatives were assumed as one and only one entity. Meaning, the

opinions given by the respondents reflected that of the selected university bookstores.
 32

The population is all university bookstores in the whole Philippines that employ con-

signment. According to Commission on Higher Education (2015), there are 2, 180 universities in

the Philippines. Some universities do not have bookstore at all. Some have but not operated by

the university itself, and some have operated by cooperatives. The focus of this research is for

those owned by the university through the finance department. With its wide scope, population

was narrowed down using the following criteria, as purposive sampling was used: (1) the univer-

sity should be located within NCR area, (2) the bookstore should be owned and operated by the

university, (3) the student population must be at least 10,000 for the current school year, and (4)

the personnel (as representative) should have knowledge on both accounting procedure and in-

ternal control of the university bookstores consignment practices. The number of respondents

who qualify for the criteria given is ten (10).

Research Instrument and Technique

Since the study used descriptive method, survey type of research, questionnaire was uti-

lized as a tool for gathering data. The questionnaire is entitled Prescribed Consignment Practices

Questionnaire. It is an adapted questionnaire using different standards and pronouncements

about consignment accounting procedure and internal control.

Standards and pronouncements that were used as guides includes: International Account-

ing Standards 2- Inventories, International Accounting Standards 18-Revenue Recognition,

KPMG Internal Control Practical Guide, COSO Internal Framework Guide, University of Mus-

cogee Bookstore policies and Procedures; LBMA (London Bullion Market Association) Con-

signment Agreement Draft, LegalZoom Consignment Agreement and Guide, and Advanced Ac-

counting Two by Baysa and Lupisan.

 33

In the context of the study, the researchers focused on determining the level of adherence

on the prescribed consignment practices of selected university bookstores. The tool consisted of

eight parts; one for the demographics and seven for the consignment practices with five ques-

tions for each from a combination of accounting procedure and internal control provisions. The

distribution of question for the two was distributive.

The research problem as stated in the Statement of the Problem of the paper was an-

swered systematically as to the design of the questionnaire. The first part of the questionnaire

represented the first specific problem, What is the profile of selected university bookstores in

terms of years of operation? The second part of the questionnaire represented the second spe-

cific problem, What is the level of adherence of selected university bookstores to the prescribed

consignment practices: (a) delivery of goods; (b) risk of loss, damages and confusions; (c) efforts

to sell; (d) payment, sales and commission; (e) return of products; (f) termination; and (g) legal

items? The third and fourth specific problems were not directly represented by the question-

naire, but rather answered using statistical methods.

Data Gathering Procedure

Contact all Contact selected
university in NCR university
Construct the
for bookstore bookstores for
questionnaire
consignment more information
verification inquiries

Give permission
to conduct study Do the validation
Do questionnaire and reliability
distribution to selected
univeristy testing
bookstores

Collect and
Do inferential
tabulate results
statistical
(descriptive
analyses
analyses)
Figure 2. Data gathering procedure flow diagram.
 34

From the population, all selected university bookstores in the whole Philippines that em-

ploy consignment, selected respondents were segregated using the criteria laid down. First, all

universities in NCR (from a pool form all over the Philippines) were contacted one-by-one. The

following queries were asked: (1) is there a bookstore inside the campus, that is owned and oper-

ated by the university, just like an extension of the Finance department and (2) is the bookstore

employing consignment? From these, those universities having bookstores that employ consign-

ment were segregated.

From those segregated, the researchers contacted the selected universities, through email

or phone call to send permission and request to disseminate enrollment information. After the

receipt of information, those having student population of at least 10,000 for the current year,

were further segregated.

From those segregated, the researchers contact the selected universities finance, through

email or phone call to send permission and request to conduct study and choose a personnel as a

representative of the university. Those personnel who have enough knowledge about the ac-

counting procedure and internal control for consignment practices were segregated. It is the head

of the finance department that decides who will be selected (it can be the Finance head also). Se-

lected personnel will be the respondent and representative of the university bookstore.

The survey was adapted using standards and pronouncement for consignment accounting

procedures and internal control. The questionnaire was composed of thirty-five (35) questions,

which were detailed and more related to accounting procedures and internal control for the con-

signment practices.

Validation of the questionnaire and reliability test was done with the help of the adviser

and outside party validators, which are CPAs. After the validation process, the researchers sent
 35

e-mails to selected universities finance department for permission to conduct study. This was

due to the reason that the head of the finance department will be the one to choose the repre-

sentative of the university needed for the study. Once the feedback from the e-mail was accepted,

with a permission to deliver the questionnaires, the researchers distributed the questionnaires to

the respective universities offices. Answering of the questionnaire was supported by direct ob-

servation and interview. Every time a questionnaire was completed, tabulation of points was

done. Results obtained remained confidential to the researchers themselves. The next step did not

start until all the questionnaires were retrieved.

Next, statistical computations were made to test the hypothesis. Mean, standard devia-

tion, and coefficient of variation were computed to determine the level of compliance of the

bookstores to the prescribed consignment practices. Kruskall-Wallis H test was utilized in identi-

fying significant difference between the responses when the respondents were grouped to years

of operation.

Statistical Treatment of Data

Results from the first part of the questionnaire were tallied together in a frequency table

used to create charts. Results from the second part of the questionnaire were tallied together by

category. For each statement item, the following were the pointing system:

Adjectival
Point Point Range
Description

3 2.51-3.00 Adhere

Adhere with
2 1.50-2.49
limitations

1 1.00-1.49 Not adhere

Table 1.Pointing system to be used to measure adherence

 36

Descriptive Analysis

The data gathered were subjected to different statistical tools accordingly. The profiles of

the respondents were illustrated in the frequency and percentage of respondents profile with the

format as follows:

Gender Frequency (f) Percentage (%)

Male x y

Female z-x 100-y

Total z 100

Table 2. Table format for illustrating frequency and percentage of respondents profile.

Mean, standard deviation, and coefficient of variation were computed to determine the

level of adherence on the prescribed consignment practices of each of the sample for every cate-

gory. From thirty-five (35) questions, mean was computed for every statement and every catego-

ry of consignment practices, and the result served as level of adherence of the sample to the pre-

scribed consignment practices. Each analysis was presented in a tabular form.

Standard deviation were used to measure how each response is closer or farther from the

mean and how groups of response were scattered or compacted around the mean.

Inferential Statistics

Statistical computations were made to relate the results thereon. Each analysis was pre-

sented in a tabular form and the asymptotic value was obtained from each table in each statement to

determine if the hypothesis was accepted or rejected which determined the significance of this re-

search. Kruskall-Wallis H test was used to test difference in all the consignment practices catego-

ries.
 37

Kruskall-Wallis H Test

The Kruskall-Wallis H test (sometimes also called the "one-way ANOVA on ranks") is a

rank-based nonparametric test that can be used to determine if there are statistically significant

differences between two or more groups of an independent variable on a continuous or ordinal

dependent variable. In the context of the study, years of operation were divided into four catego-

ries or groups: 1-5, 6-10, 11-15, 16 years and above. If the computations result to a difference,

then years of operation do affect consignment practices, if not, then vice-versa. The non-

parametric test used is Kruskall-Wallis where the Chi Square and asymptotic significance value

(below 0.05) determines the acceptance and rejection of hypothesis. The researchers made use of

software IBM SPSS Statistics 22 to generate the statistical results of the gathered data.
 38

CHAPTER IV

Presentation, Analysis and Interpretation of Data

1. Profile of the Respondents

1.1 Years of Operation

Table 3 illustrates the frequency and percentage of the respondents profile in

terms of years of operation.

Table 3
Frequency and Percentage Distribution of the Respondents Profile According to Years of
Operation

Years of Operation Frequency (f) Percentage (%)

1-5 years 2 20
6-10 years 4 40
11-15 years 3 30
16 years and above 1 10
Total 10 100

The above table shows that four (4) of the respondents or forty percent (40%) have been

operating for 6-10 years. While three (3), two (2), and one (1) of the respondents or thirty per-

cent (30%), twenty percent (20%), and ten percent (10%), have been operating for 11-15 years,

1-5 years, and 16 years and above; descending respectively.

The said findings are an expected distribution since most of the universities that form part

of the sample have only recently established their operation due to recent increase in student

population that positively agreed to the need of a bookstore.

 39

2. Level of Adherence on the Prescribed Consignment Practices of University Bookstores

2.1 Delivery of goods

Table 4 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed delivery of goods practices of university bookstores.

Table 4
Level of Adherence on the Prescribed Delivery of Goods Practices of University Bookstores

Prescribed Delivery of Goods Mean SD Adjectival Interpretation

Practices Description
1. The bookstore labels consigned
books with an identification tag
(e.g., serial number, codes, col- 2.80 0.42 Adhere Very High Level
oured tag) when such books are
received.
2. The bookstore records all deliv-
ery costs unless it is reimbursable
to the consignor. (A debit to Re- 2.90 0.32 Adhere Very High Level
ceivable from Consignor and a
credit to Cash are recorded)
3. The bookstore records a memo-
randum entry (e.g. A receipt of 100
units of books consigned are re-
3.00 0.00 Adhere Very High Level
ceived on January 1, 2016) and the
title of products still remains with
the consignor.
4. The bookstore receives the initial
list prices together with the signed Moderately High
2.70 0.48 Adhere
agreement after examining appro- Level
priate terms.
5. The bookstore properly stocks
delivered books in a central stock-
2.80 0.42 Adhere Very High Level
room or inside the bookstore prem-
ises.
Composite Mean 2.84 0.21 Adhere Very High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level
As shown in the table, the prescribed practice The bookstore records a memorandum

entry (e.g. A receipt of 100 units of books consigned are received on January 1, 2016) and the

title of products still remains with the consignor. got the highest mean of 3.00 with a standard
 40

deviation of 0.00. On the contrary, the prescribed practice The bookstore receives the initial list

prices together with the signed agreement after examining appropriate terms. got the lowest

mean of 2.70 with a standard deviation of 0.48.

The university bookstores sampled have very high level of adherence when it comes to

labeling goods properly, recording delivery cost, recording a memorandum entry, and stocking

books properly with means of 2.80, 2.90, 3.00, 2.80; which all fall at the 2.76-3.00 range of

Very High Level; and standard deviation of 0.42, 0.32, 0.00, 2.80, respectively. The values of

standard deviation showed that responses were not that scattered compared to other statements

and the distribution are relatively homogeneous. The only exception is the fifth statement with

mean of 2.70, which fall at the 2.01-2.75 range of Moderately High Level. It has a standard

deviation of 0.48, the highest among all statements. It signifies that responses are more scattered

compared to other statements. So barely all responses fall at the range Moderately High Level,

some might fall above or below. Some bookstores receive initial list prices together with signed

agreement, some at extreme; do not follow this practice.

In summary, the over-all response manifested in the composite mean is 2.84 with the

standard deviation of 0.21 described as Adhere, interpreted as Very High Level. A standard

deviation of 0.21 means that scores from bookstores are closer, in general, to the mean, meaning

almost all of the bookstores have very high level of overall adherence to the prescribed delivery

of goods practices.

The said findings are also true with the survey done by National Association of College

Stores (NACS) (2010) in their Campus Survey Services stating that, higher education retail mar-

kets do not encounter problems when it comes to receipt and management of delivered goods.
 41

On the contrary, NACS stated that quantity discrepancies, incorrect goods and damaged goods

are some of the issues encountered by bookstores in the past years.

2.2 Risk of Loss, Damages and Confusions

Table 5 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed risk of loss, damages and confusions practices of university bookstores.

Table 5
Level of Adherence on the Prescribed Risk of Loss, Damages and Confusions Practices of
University Bookstores

Prescribed Risk of Loss, Damag- Mean SD Adjectival Interpretation

es and Confusions Practices Description
1. The books are checked and ex-
amined for visible signs of damag-
Moderately High
es or loss and if discovered con- 2.70 0.67 Adhere
Level
cealed damages or loss, it is report-
ed immediately to the supplier.
2. The bookstore does record loss
and damages unless it is the negli-
gence of the bookstore. (A Debit to 2.90 0.32 Adhere Very High Level
appropriate expense account and a
Credit to cash)
3. The bookstore insures the books
against all risks against which are
customarily insured, including in-
Adhere with Moderately High
surance for theft and damage, and 2.10 0.88
limitations Level
provides evidence of such insur-
ance coverage to the consignor as
and when requested.
4. The bookstore makes sure to
meet certain standards in keeping
of the books, such as their segrega- Moderately High
2.50 0.85 Adhere
tion from goods wholly owned or Level
held under a claim of ownership or
interest.
5. The bookstore maintains an ac-
curate physical inventory log rec-
2.90 0.32 Adhere Very High Level
ords of consigned books delivered
after examining the books.
Composite Mean 2.62 0.43 Moderately
Adhere
High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level
 42

As shown in the table, the prescribed practices The bookstore maintains an accurate

physical inventory log records of consigned books delivered after examining the books and

The bookstore does record loss and damages unless it is the negligence of the bookstore. (A

Debit to appropriate expense account and a Credit to cash) got the highest means of 2.90 with

a standard deviation of 0.32 both. On the contrary, the prescribed practice The bookstore in-

sures the books against all risks against which are customarily insured, including insurance for

theft and damage, and provides evidence of such insurance coverage to the consignor as and

when requested. got the lowest mean of 2.10 with a standard deviation of 0.88.

The university bookstores sampled have very high level of adherence when it comes to

recording loss and damages, and maintaining physical inventory log records with means of both

2.90; which all fall at the 2.76-3.00 range of Very High Level; and standard deviation of both

0.32. The values of standard deviation showed that responses were not that scattered compared to

other statements and the distribution are relatively homogeneous. There are three statements

namely, the checking of damages or loss, bookstore insurance of books against all risks and seg-

regation of books with mean of 2.70, 2.10, and 2.50, respectively which fall at the 2.01-2.75

range of Moderately High Level. The three has a standard deviation of 0.67, 0.88, and 0.85,

respectively, which is relatively higher than those statements with a very high level interpreta-

tion. It signifies that responses are more scattered compared to other statements. So barely all

responses fall at the range Moderately High Level, some fall below. Extreme responses are evi-

dent since the standard deviations are closer to 1.00, especially to insuring books some did not

actually insure and some actually insure.

In summary, the over-all response manifested in the composite mean is 2.62 with the

standard deviation of 0.43 described as Adhere, interpreted as Moderately High Level. A

 43

standard deviation of 0.43 means that scores from bookstores are farther, in general, to the mean,

meaning reasonably all of the bookstores have moderately high level of overall adherence to the

prescribed risk of loss, damages and confusions practices. The moderateness came from check-

ing visible signs of damage and segregation of wholly owned form those consigned, but whats

noticeable is insuring their books against all risk.

The said findings are also true with the study of American Booksellers Association

(ABA) (2010) stating that not all independent and higher education institution-owned bookstores

are insuring their books, instead they compensate this by implementing more risk policies. It is

presumed that the consignee would take care of the books with ordinary care and it also depends

to extent of implementing the risk policies of the university.

2.3 Efforts to Sell

Table 6 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed efforts to sell practices of university bookstores.

Table 6
Level of Adherence on the Prescribed Efforts to Sell Practices of University Bookstores

Prescribed Efforts to Sell Prac- Mean SD Adjectival Interpretation

tices Description
1. The bookstore entices student
Moderately High
demand for the book by proper po- 2.50 0.53 Adhere
Level
sitioning and displaying of books.
2. The bookstore records the adver-
tising expenses incurred. (A Debit Adhere with Moderately Low
1.90 0.74
to Receivable from Consignor and limitations Level
a Credit to Cash)
3. The bookstore is requiring the
purchase of books as college aca- Adhere with Moderately High
2.30 0.82
demic requirements for the stu- limitations Level
dents.
4. The bookstore agrees with the
consignors price and is justifiable 2.80 0.42 Adhere Very High Level
enough to have a high demand for
 44

the product for assurance of high

volume sales.
5. The bookstore staff has an oral
Moderately High
tradition of promoting the books 2.60 0.52 Adhere
Level
and courtesy to the students.
Composite Mean 2.42 0.26 Adhere with Moderately
limitations High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed practice The bookstore agrees with the consignors

price and is justifiable enough to have a high demand for the product for assurance of high vol-

ume sales. got the highest mean of 2.80 with a standard deviation of 0.42. On the contrary, the

prescribed practice The bookstore records the advertising expenses incurred. (A Debit to Re-

ceivable from Consignor and a Credit to Cash) got the lowest mean of 1.90 with a standard

deviation of 0.74.

The university bookstores sampled have moderately high level of adherence when it

comes to proper positioning of books, requiring of purchasing of books, and promotion of books

with the mean of 2.50, 2.30, and 2.60, respectively; which all fall at the 2.01-2.75 range of

Moderately High Level; and standard deviation of 0.53, 0.82, and 0.52, respectively. The val-

ues of standard deviation showed that responses were scattered and the distribution are relatively

heterogeneous. Only some responses fall at the range Moderately High Level, some might fall

above or below. Extremes are also evident, most especially when it comes to properly and rea-

sonable recording of advertising expense, bookstores encounter confusions. This makes the sec-

ond statement have a mean of 1.90 and highest standard deviation of 0.74. Some bookstores are

recording it properly and some, although not intentionally, do not record it properly. The only

exception is the fourth statement with mean of 2.80, which fall at the 2.75-3.00 range of Very

High Level. It has a standard deviation of 0.42, the lowest among all statements. It signifies that
 45

responses are less scattered compared to other statements. Virtually certain, bookstores have

proper consignor price agreement.

In summary, the over-all response manifested in the composite mean is 2.42 with the

standard deviation of 0.26 described as Adhere with Limitations, interpreted as Moderately

High Level. A standard deviation of 0.26 means that scores from bookstores are closer, in gen-

eral, from mean, meaning almost all of the bookstores have moderately high level of overall ad-

herence to the prescribed efforts to sell. The university bookstores sampled each have their own

marketing strategies in order to sell the books consigned. Proper positioning and advertising ex-

penses are dependent to the discretion of the consignor and bookstore agreement. Requiring stu-

dents to buy the book as a requirement is also dependent to the discretion of the university since

the students are mostly college students, they have a choice whether they want to buy in the

bookstore or bookstores outside the school.

The said findings are supported by an article written by Silverberg and Glover (2014)

stating that campus bookstore nowadays were reporting decline in sales, and the old generation

problem lies with the traditional campus bookstore setting. A decline in demand of prospective

buyers results to a decline in sales. Silverberg and Glover (2014) therefore recommend having a

new generation campus store where not just pieces of paper will improve placing of items and

develop an oral tradition among campus students.

2.4 Sales, Payment and Commission

Table 7 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed sales, payment and commission practices of university bookstores.

 46

Table 7
Level of Adherence on the Prescribed Sales, Payment and Commission Practices of
University Bookstores

Prescribed Sales, Payment and Mean SD Adjectival Interpretation

Commission Practices Description
1. The bookstore reconciles those
received from what is recorded at
3.00 0.00 Adhere Very High Level
least daily unless weekly is more
efficient.
2. The bookstore remits proceeds of
sale of consigned books to the con-
signor or to deposit them in a spe- 2.80 0.42 Adhere Very High Level
cial account on or before the period
agreement.
3. The bookstore records sales of
consigned books as a Debit to Cash
3.00 0.00 Adhere Very High Level
and a Credit to Payable to the Con-
signor.
4. Notification of sale, expense and
remittance are recorded as Debit to
Payable to Consignor and a Credit
3.00 0.00 Adhere Very High Level
to Commission Income and Cash
unless receivable are already de-
ducted from those due.
5. The bookstore with the con-
signor stipulates proper agreement
of commission rate putting into
2.90 0.32 Adhere Very High Level
consideration, improvement of
Sales as determinant of commission
rate.
Composite Mean 2.94 0.13 Adhere Very High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed practices The bookstore reconciles those received

from what is recorded at least daily unless weekly is more efficient., The bookstore records

sales of consigned books as a Debit to Cash and a Credit to Payable to the Consignor., and

Notification of sale, expense and remittance are recorded as Debit to Payable to Consignor

and a Credit to Commission Income and Cash unless receivable are already deducted from those

due. got the highest means of 3.00 with a standard deviation of 0.00 for all statements. On the
 47

contrary, the prescribed practice The bookstore remits proceeds of sale of consigned books to

the consignor or to deposit them in a special account on or before the period agreement. got

the lowest mean of 2.80 with a standard deviation of 0.42.

The university bookstores sampled have a very high level of adherence when it comes to

reconciling of received and what is recorded, remittance of proceeds, recording of sales, record-

ing of notification of sales, expense and remittance, and stipulation of proper commission rate

with the mean of 3.00, 2.80, 3.00, 3.00, and 2.90, respectively; which all fall at the 2.75-3.00

range of Very High Level; and standard deviation of 0.00, 0.42, 0.00, 0.00, and 0.32, respec-

tively. The values of standard deviation showed that responses are not that scattered compared to

other statements and the distribution are relatively homogeneous. So, almost all responses fall at

the range Very High Level.

In summary, the over-all response manifested in the composite mean is 2.94 with the

standard deviation of 0.13 described as Adhere, interpreted as Very High Level. A standard

deviation of 0.13 means that scores from bookstores are closer from mean, meaning almost all of

the bookstores have very high level of overall adherence to the prescribed sales, payment and

commission practices.

According to Athitakis (2012), there is no problem with the management and ins and outs

of sales, payment and commission, but the problem lies with experimenting ideas of improving

them above average. All university bookstores sampled are in unison, internal control and ac-

counting control, when it comes sales, payment and commission practices since these are fixed

terms in the consignment agreement and it involves money and profit that is why strict manage-

ment over this category is a must to avoid breach of contract.

 48

2.5 Return of Products

Table 8 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed return of products practices of university bookstores.

Table 8
Level of Adherence on the Prescribed Return of Products Practices of University
Bookstores

Prescribed Return of Products Mean SD Adjectival Interpretation

Practices Description
1. Defective books that are seen or
returned by the students are marked
2.80 0.42 Adhere Very High Level
by the bookstore as defective and
returns to the supplier immediately.
2. The bookstore with the con-
signor properly agrees with period
3.00 0.00 Adhere Very High Level
of return and when the automatical-
ly unsold goods will be returned.
3. The bookstore records a memo-
randum entry when there is a return
of product. (e.g 100 units of books
3.00 0.00 Adhere Very High Level
were returned to the consignor due
to incomplete pages on January 15,
2016)
4. The bookstore segregates books
returned properly identified and
counted before the date of return. Moderately High
2.70 0.48 Adhere
Delivery controls are taken into Level
consideration to eliminate possible
future return cost.
5. The bookstore does not follow
the principle of No Return, No
Adhere with Moderately Low
Exchange policy unless stipulated 1.60 0.97
limitations Level
in the agreement. It is the duty and
expense of the consignor.
Composite Mean 2.62 0.22 Moderately
Adhere
High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed practices The bookstore with the consignor proper-

ly agrees with period of return and when the automatically unsold goods will be returned. and

The bookstore records a memorandum entry when there is a return of product. (e.g 100 units of
 49

books were returned to the consignor due to incomplete pages on January 15, 2016) got the

highest means of 3.00 with a standard deviation of 0.00 both. On the contrary, the prescribed

practice The bookstore does not follow the principle of No Return, No Exchange policy un-

less stipulated in the agreement. It is the duty and expense of the consignor. got the lowest

mean of 1.60 with a standard deviation of 0.97.

The university bookstores sampled have very high level of adherence when it comes to

marking defective books, returning goods with period of return, and recording of memorandum

entry for return of product with means of 2.80, 3.00, and 3.00, respectively; which all fall at the

2.76-3.00 range of Very High Level; and standard deviation of 0.42, 0.00, and 0.00, respec-

tively. The values of standard deviation showed that responses were not that scattered compared

to other statements and the distribution are relatively homogeneous. The exceptions are to segre-

gating books to be returned and does not following the principle of No Return, No Exchange

with mean of 2.70 and 1.60, which fall at the 2.01-2.75 range of Moderately High Level. With

a standard deviation of 0.48 and 0.97, respectively both are relatively higher than the other

statements. It signifies that responses are more scattered compared to other statements, especially

the fifth statement, where standard deviation is closest to 1.00. So barely all responses fall at the

range Moderately High Level, some might fall above or below. Some bookstores do not follow

the No Return, No Exchange, some do absolutely follow.

In summary, the over-all response manifested in the composite mean is 2.62 with the

standard deviation of 0.22 described as Adhere, interpreted as Moderately High Level. A

standard deviation of 0.22 means that scores from bookstores are closer, in general, to the mean,

meaning almost all of the bookstores have moderately high level of overall adherence to the pre-

scribed return of products practices.

 50

According to Wise (2010), in his article Placing your goods on consignment, return of

products is a normal activity in consigning, and it is within the Uniform Commercial Code

(UCC) stating that consignee can return products even if it is not defective or damaged, that most

consignees adherently follow a tradition of managing them according to existing code policies.

Since return of products is a common thing in consignment, having a moderately high level is

quite alarming, expecting the result to be very high. The No return, no exchange policy should

not be followed but in under some circumstances this may be dependent to the discretion of the

bookstore or the university itself.

2.6 Termination

Table 9 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed termination practices of university bookstores.

Table 9
Level of Adherence on the Prescribed Termination Practices of University Bookstores

Prescribed Termination Practices Mean SD Adjectival Interpretation

Description
1. The bookstore returns all unsold
copies at the termination of con-
2.80 0.42 Adhere Very High Level
signment period in the same quality
as it was delivered.
2. The bookstore follows the
amount of time given by the sup- Moderately High
2.50 0.53 Adhere
plier to return the books after the Level
termination of agreement.
3. The bookstore records a memo-
randum entry for return of unsold
copies of books (e.g. termination of
contract with supplier A. 120 un- 2.90 0.32 Adhere Very High Level
sold goods are returned and allo-
cated collection was remitted
January 31, 2016)
4. The bookstore segregates books
returned properly identified and Moderately High
2.60 0.84 Adhere
counted before the date of return. Level
Delivery controls are taken into
 51

consideration to eliminate possible

future return cost. (During termina-
tion)
5. The bookstore terminates the
contract with justifiable and proof- 2.90 0.32 Adhere Very High Level
based to who breaches the contract.
Composite Mean 2.74 0.27 Moderately
Adhere
High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed practice The bookstore records a memorandum

entry for return of unsold copies of books (e.g. termination of contract with supplier A. 120 un-

sold goods are returned and allocated collection was remitted January 31, 2016) got the

highest mean of 2.90 with a standard deviation of 0.32. On the contrary, the prescribed practice

The bookstore follows the amount of time given by the supplier to return the books after the

termination of agreement. got the lowest mean of 2.50 with a standard deviation of 0.53.

The university bookstores sampled have very high level of adherence when it comes to

returning of all unsold copies due to termination, recording of return of unsold copies due to ter-

mination, and terminating contract with justifiable and proof based to who breaches the contact

with the means of 2.80, 2.90, and 2.90, respectively; which all fall at the 2.76-3.00 range of

Very High Level; and standard deviation of 0.42, 0.32, and 0.32, respectively. The values of

standard deviation showed that responses were not that scattered compared to other statements

and the distribution are relatively homogeneous. The exceptions are following the amount of

time for return and segregating the goods to be returned with mean of 2.50 and 2.60, respective-

ly, which fall at the 2.01-2.75 range of Moderately High Level. With the standard deviation of

0.53 and 0.48, respectively, both are relatively higher than other statements. It signifies that re-

sponses are more scattered compared to other statements. So barely all responses fall at the range

Moderately High Level, some might fall above or below. Some are doing and some are not doing
 52

the practices as these are the same practices for the return of products category that were inter-

preted also as Moderately High. A parallelism is alarmingly evident.

In summary, the over-all response manifested in the composite mean is 2.74 with the

standard deviation of 0.27 described as Adhere, interpreted as Moderately High Level. A

standard deviation of 0.27 means that scores from bookstores are closer, in general to the mean,

meaning almost all of the bookstores have moderately high level of overall adherence to the pre-

scribed termination practices. All bookstore sampled have almost the same implementation of

termination policies despite some university bookstore sampled havent yet experienced termina-

tion since they are still new in the industry and answered the questions, theoretically, with the

policies implemented by the university.

2.7 Legal items

Table 10 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed legal items practices of university bookstores.

Table 10
Level of Adherence on the Prescribed Legal items Practices of University Bookstores

Prescribed Legal items Practices Mean SD Adjectival Interpretation

Description
1. The bookstore cancels the con-
signment by giving notice in writ-
ing, if the consignor is unable to
Adhere with Moderately Low
deliver the consignment within a 2.00 0.82
limitations Level
reasonable period after giving no-
tice under delay of delivery. (Force
Majeure)
2. All notices are duly signed by
the bookstore, or on behalf of the
party, giving it and are served by 2.90 0.32 Adhere Very High Level
delivering it personally or virtually
to the relevant party.
3. The consignment agreement
properly sets forth law and jurisdic- 2.90 0.32 Adhere Very High Level
tion that are to be construed and
 53

performed in accordance with the

Philippine Law.
4. The consignment agreement is
put in to writing properly signed
2.80 0.42 Adhere Very High Level
for and on behalf of the consignor
and the consignee.
5. The bookstore properly records
special accounts according to clas- Adhere with Moderately High
2.40 0.52
sification (e.g. special kinds of limitations Level
commission Del Grede)
Composite Mean 2.60 0.33 Moderately
Adhere
High Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed practices All notices are duly signed by or on be-

half of the party giving it and shall be served by delivering it personally or virtually to the rele-

vant party and The consignment agreement properly sets forth law and jurisdiction that are to

be construed and performed in accordance with the Philippine Law. got the highest means of

2.90 with a standard deviation of 0.32 both. On the contrary, the prescribed practice The

bookstore cancels the consignment by giving notice in writing, if the consignor is unable to de-

liver the consignment within a reasonable period after giving notice under delay of delivery.

(Force Majeure) got the lowest mean of 2.00 with a standard deviation of 0.82.

The university bookstores sampled have very high level of adherence when it comes to

duly signing of agreement by the bookstore, according of agreement to Philippine Law, and put-

ting into writing of consignment agreement with the means of 2.90, 2.90, and 2.80; which all fall

at the 2.76-3.00 range of Very High Level; and standard deviation of 0.32, 0.32, and 0.42, re-

spectively. The values of standard deviation showed that responses were not that scattered com-

pared to other statements and the distribution are relatively homogeneous. The exceptions are the

sending of notice to in writing when consignor did not deliver goods at a reasonable and of es-

sence period and recording properly of special accounts with means of 2.00 and 2.40, which fall
 54

at the 1.26-2.00 range of and 2.01-2.75 range of Moderately Low Level and Moderately High

Level, respectively. With a standard deviation of 0.82 and 0.52, both are relatively higher than

other statements. It signifies that responses are more scattered compared to other statements. So

barely all responses fall at the range Moderately High Level, some might fall above or below.

Duly writing a notice to consignor when delivery is not done despite of essence of period and

properly recording special accounts are new to sampled bookstores, they already encounter those

but do not have proper orientation during those times. Some bookstores through consignors

guide were oriented about the matters. Some were entirely not aware, resulting to the results to

be scattered.

In summary, the over-all response manifested in the composite mean is 2.60 with the

standard deviation of 0.33 described as Adhere, interpreted as Moderately High Level. A

standard deviation of 0.33 means that scores from bookstores are farther, in general, to the mean,

meaning reasonably all of the bookstores have moderately high level of overall adherence to the

prescribed legal items practices.

According to most of the sampled universities, they have no problem with implementing

legal items policies, which are legal policies, because of the support coming from the consignor

themselves and their respective legal counsels. All university bookstores sampled follows the

formality of the consignment agreement in accordance to law, even though there are some limita-

tions when it comes to Force Majeure instances which is dependent to the stipulations of both

parties and circumstances when it comes to special accounts in which most of the bookstores

sampled have not experience having special kinds of accounts, all-in-all the consignment agree-

ment should not be contrary to law, public order, public policy and good customs.
 55

2.8. Over-all

Table 11 shows the mean, standard deviation, and interpretation of the level of adherence

on the prescribed consignment practices of university bookstores.

Table 11
Level of Adherence on the Prescribed Consignment Practices of University Bookstores

Prescribed Consignment Practices Mean SD Interpretation

Deliver of Goods 2.84 0.21 Very High Level
Moderately High
Risk of Loss, Damages and Confusions 2.62 0.43
Level
Moderately High
Efforts to Sell 2.42 0.26
Level
Payment, Sales and Commission 2.94 0.13 Very High Level
Moderately High
Return of Products 2.62 0.22
Level
Termination 2.74 0.27 Moderately High
Level
Legal Items 2.60 0.33 Moderately High
Level
Composite Mean 2.68 0.15 Moderately High
Level
Legend: 1.00-1.25- Very Low Level; 1.26-2.00- Moderately Low Level; 2.01-2.75- Moderately High Level; 2.76-
3.00- Very High Level

As shown in the table, the prescribed consignment practice category Payment, Sales and

Commission got the highest mean of 2.94 with a standard deviation of 0.13. On the contrary, the

prescribed consignment practice category Efforts to Sell got the lowest mean of 2.42 with a

standard deviation of 0.26.

The university bookstores sampled have moderately high level of adherence when it

comes to Risk of Loss, Damages and Confusions, Efforts to Sell, Return of Products, Termina-

tion, and Legal Items with the means of 2.62, 2.42, 2.62, 2.74, and 2.60; which all fall at the

2.01-2.75 range of Moderately High Level; and standard deviation of 0.43, 0.26, 0.22, 0.27,

and 0.33, respectively. The values of standard deviation showed that responses were not that
 56

scattered and the distribution are reasonably homogeneous. The exceptions are Deliver of Goods

and Payment, Sales and Commission with means of 2.84 and 2.94, which fall at the 2.75-3.00

range of Very High Level. With a standard of 0.21 and 0.33, respectively, both are the lowest

among all statements. It signifies that responses are not scattered compared to other statements.

Almost all of the responses fall at the range Very High Level.

It is noticeably evident that, in general, as the level of adherence gets higher, standard

deviation gets lower. It can be interpreted that, for example, when a following category was in-

terpreted as having a moderately high level of adherence, scattering of responses will most likely

to be evident, meaning extremes are more possible. Some fall below the range and some fall

above; moreover, there is actually a lesser chance that responses are congested nearer to mean,

extreme values pull the mean higher or lower than it is without the extremes.

In summary, the over-all response manifested in the composite mean is 2.68 with the

standard deviation of 0.15 interpreted as Moderately High Level. A standard deviation of 0.15

means that score from bookstores are closest to mean, meaning almost all of the bookstores have

moderately high level of overall adherence of the prescribed consignment practices. Mostly all

categories is moderately high level which means all bookstore sampled have adhered to the pre-

scribed consignment practices, some may have limitations due to stipulations in the agreement

but all-in-all they have adhered to the prescribed consignment practices. Payment, Sales and

Commission practices of the all the university bookstore sampled have a strict implementation

and management since it involves money and profit that is why all accounting and internal con-

trols are fully adhered, resulting to a Very High Level of adherence. While on the other hand,

Effort to sell is low since university bookstores dont give much attention in advertising since it

depends on the discretion of the consignor and the marketing strategy depends on the discretion
 57

of the university, resulting to a Moderately High Level but compared to others also having

Moderately High Level is lower.

3. Differences in the Level of Adherence on the Prescribed Consignment Practices when

Grouped According to Years of Operation

3.1 Delivery of goods

Table 12 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed delivery of goods

practices of university bookstores.

Table 12
Differences in the Level of Adherence on the Prescribed Delivery of Goods Practices when
Grouped According to Years of Operation

Prescribed Deliv- Years of Mean Chi- Asymptotic Decision Interpretation

ery of Goods Prac- Operation Rank Square Significance on HO
tices
1. The bookstore
1-5 years 4.00
labels consigned
books with an iden-
6-10 years 5.25
tification tag (e.g.,
Not Signifi-
serial number, 11-15 1.969 0.579 Accept
6.50 cant
codes, colored tag) years
when such books
16 years
are received are re- 6.50
and above
ceived.
2. The bookstore
records all delivery 1-5 years 6.00
costs unless it is re-
imbursable to the 6-10 years 4.75
Not Signifi-
consignor. (A debit 1.500 0.682 Accept
11-15 cant
to Receivable from 6.00
years
Consignor and a
credit to Cash are 16 years 6.00
recorded) and above
 58

1-5 years 5.50

3. The bookstore
records a memoran-
dum entry (e.g. A
receipt of 100 units 6-10 years 5.50
of books consigned Not Signifi-
0.000 1.000 Accept
are received on Jan- cant
uary 1, 2016) and 11-15
5.50
the title of products years
still remains with
the consignor. 16 years
5.50
and above

4. The bookstore 1-5 years 2.00

receives the initial
list prices together 6-10 years 5.75
with the signed Not Signifi-
11-15 5.786 0.123 Accept
agreement after ex- 7.00 cant
amining appropriate years
terms. 16 years
7.00
and above
5. The bookstore 1-5 years 1.50
properly stocks de-
6-10 years 6.50
livered books in a
central stockroom 11-15 9.000 0.029 Reject Significant
6.50
or inside the years
bookstore premises. 16 years
6.50
and above
Over-all 1-5 years 1.50
6-10 years 5.00
11-15 Not Signifi-
8.00 7.404 0.060 Accept
years cant
16 years 8.00
and above
At 0.05 Level of Significance

For the first practice, the mean ranking is tie for 11-15 and 16 years and above groups,

which have the highest mean ranks of 6.50, followed by 6-10 years group with 5.25 and the 1-5

years group which has the lowest mean rank of 4.00. Therefore, the two highest groups observe

more carefully the labeled identification tags of consigned books than the 1-5 and 6-10 years
 59

groups. It is shown that the bookstores implement a high internal control it terms of delivery of

goods by checking each or doing a sampling.

For the second practice, the mean ranking is tie for all groups, which have mean ranks of

6.00, except for the 6-10 years group which has a mean rank of 4.75. The delivery expense is al-

ways shouldered by the consignor for all groups with a highest mean rank except for the 6-10

years group that depends on the consignor whether the bookstore will pay for the expense or can

be reimbursed.

For the third practice, the mean ranking is tie for all groups, which have mean ranks of

5.50. Hence, all groups fully adhere when it regards to memorandum entry as they receive the

consigned books. The title or ownership still remains on the consignor for the bookstores have no

entry on their journals.

For the fourth practice, the mean ranking is tie for 11-15 and 16 years and above groups,

which have the highest mean ranks of 7.00, followed by 6-10 years group with 5.75 and the 1-5

years group which has the lowest mean rank of 2.00.Therefore, the bookstores that were estab-

lished for a long time (above five years), are strict in reviewing the terms and signed agreement

with initial list prices as they garnered the highest mean ranks. The 1-5 years group is still on the

process of adhering the policy where the bookstore does not highly require.

For the fifth practice, the mean ranking is tie for all groups, which have mean ranks of

6.50, except for the 1-5 years groups which has a mean rank of 1.50. The same as the result on

the fourth statement, the three groups that were established for a long time are into displaying of

books inside the premises of the bookstores or in a central stockroom as a way of advertising.

The 1-5 years group since they recently established, they are still finding enough space for the
 60

improvement of their premises and stockroom. They are still adjusting especially the times they

are huge number of demands to be satisfied by their stocks.

In overall, the mean ranking is tie for 11-15 and 16 years and above group which have

mean ranks of 8.00 both, followed by 6-10 years group which has 5.00, and 1-5 years group

which has 1.50.Therefore, the 11-15 and 16 years and above groups have higher level of adher-

ence compared to other years of operation groups. Bookstores sampled with longer years of op-

eration may have more experience in proper management of delivered books than those who

have shorter years since they are still in the process of adjustment. One proof is the proper piling

of books and available central stockroom.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed delivery of goods practices when grouped according to years of op-

eration in all the statements, except the fifth statement. All bookstores sampled nearly have the

same internal and accounting control when it comes to nearly all delivery of goods practices. The

first, second, third, and fourth statements garnered asymptotic significance values of 0.579, 0682,

1.000, and 0.123, respectively. The values are above 0.05, which means there is no significant

difference between the levels of adherence for the respective practices among different years

groups. However, when it comes to fifth statement the asymptotic significance value of 0.029,

fall below 0.05, signifies that there is a significant difference between the level of adherence for

the fifth practice. As discussed above, one proof of those bookstores having a more proper goods

management is the proper piling of books and available central stockroom.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed delivery of goods practices when grouped according to years of op-
 61

eration. The level of adherence on the prescribed delivery of goods practices does not vary across

all groups of campus bookstores sampled.

3.2 Risk of Loss, Damages and Confusions

Table 13 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed risk of loss, damages

and confusions practices of university bookstores.

Table 13
Differences in the Level of Adherence on the Prescribed Risk of Loss, Damages and Confu-
sions Practices when Grouped According to Years of Operation

Prescribed Risk of Years of Mean Chi- Asymptotic Decision Interpretation

Loss, Damages and Operation Rank Square Significance on HO
Confusions Prac-
tices
1. The books are
1-5 years 1.50
checked and exam-
ined for visible
6-10 years 6.50
signs of damages or
loss and if discov- 11-15 8.889 0.031 Reject Significant
ered concealed 6.50
years
damages or loss, it
16 years
is reported immedi- 6.50
and above
ately to the supplier.
2. The bookstore 1-5 years 6.00
does record loss and
damages unless it is
the negligence of 6-10 years 4.75
Not Signifi-
the bookstore. (A 1.500 0.682 Accept
11-15 cant
Debit to appropriate 6.00
expense account years
and a Credit to 16 years
cash) 6.00
and above
3. The bookstore
insures the books 1-5 years 2.00
against all risks
Not Signifi-
against which are 6.500 0.090 Accept
cant
customarily insured,
including insurance 6-10 years 6.75
for theft and dam-
 62

age, and provides

evidence of such 11-15
7.33
insurance coverage years
to the consignor as
and when requested. 16 years
2.00
and above

4. The bookstore 1-5 years 1.50

makes sure to meet
certain standards in 6-10 years 6.00
keeping of the
books, such as their 11-15 Not Signifi-
7.00 7.000 0.072 Accept
segregation from years cant
goods wholly
owned or held under 16 years
7.00
a claim of owner- and above
ship or interest.
5. The bookstore 1-5 years 6.00
maintains an accu-
rate physical inven- 6-10 years 4.75
11-15 Not Signifi-
tory log records of 6.00 1.500 0.682 Accept
years cant
consigned books
delivered after ex- 16 years
6.00
amining the books. and above
Over-all 1-5 years 1.50
6-10 years 6.00
11-15 Not Signifi-
8.00 6.191 0.103 Accept
years cant
16 years
4.00
and above
At 0.05 Level of Significance

For the first practice, the mean ranking is tie for all groups which have mean ranks of

6.50, except the 1-5 years group which has a mean rank of 1.50. Therefore, the three oldest

groups are meticulous in checking the consigned books containing concealed damages and signs

of defect. The 1-5 years group directly prepares a memorandum entry as they receive the goods

delivered and it does not pay too much attention on its condition.

For the second practice, the mean ranking is tie for all groups, which have mean ranks of

6.00, except for the 6-10 years group which has a mean rank of 4.75. The groups that garnered
 63

6.00 of mean rank are strictly including the terms and agreements specifically the risk of loss and

damages to be shouldered by the consignor. The 6-10 group does not fully adhere in setting the

risk of loss and damages on their terms and agreement.

For the third practice, the mean ranking is highest for 11-15 years group which has a

mean rank of 7.33, followed by 6-10 years group which has 6.75, and 1-5 years and 16 years and

above years groups which both have mean ranks of 2.00. The 1-5 and 16 and above groups are

not considering the insurance for the books consigned when a fortuitous event comes. It is either

the insurance for the books are shouldered by the consignor or the bookstore does not practice

the insurance since they are still starting with a small capital. The 6-10 and 11-15 groups are re-

sponsive in terms of insurance policy to minimize the risk of loss and damages as they are into

ordering of a large quantity of books.

For the fourth practice, the mean ranking is tie for 11-15 and 16 years and above groups,

which have the highest mean ranks of 7.00, followed by 6-10 years group with 6.00 and the 1-5

years group which has the lowest mean rank of 1.50. The standard with regards to segregation of

owned and consigned books for a big type of bookstores must be observed as they are selling

more books than the others that are still starting for the reason the three oldest groups garnered

the highest mean ranks. It enables them to determine whether their profit comes from the goods

sold or from commission. The 1-5 bookstores do not practice the segregation since the held

books are still recognizable whether it is owned or consigned due to its small quantity.

For the fifth practice, the mean ranking is tie for all groups, which have mean ranks of

6.00, except for the 6-10 years group which has a mean rank of 4.75. The maintenance of physi-

cal inventory log records of consigned books is a sign of implementing a strong internal control

in the bookstore department whereby an automated system also functions. This is proven by the
 64

result of the survey that shows no matter how long the bookstore operates, it must be still fully

adhered except the 6-10 years group with a limitation that depends on the integrity of its auto-

mated system.

In overall, the mean ranking is highest for 11-15 years group which has a mean rank of

8.00, followed by 6-10 years group which has 6.00, then 16 years and above group which has

4.00, and lastly 1-5 years group which has the lowest mean rank of 1.50.Therefore, the 11-15

years group have higher level of adherence compared to other years of operation groups. Ac-

cording to Bruskiewicz (2010), the longer the business is operating, the more chance it has to

acquire an insurance to protect expansion activities.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed risk of loss, damages, and confusions practices when grouped ac-

cording to years of operation in all the statements, except the first statement. All bookstores

sampled closely have the same internal and accounting control when it comes to nearly all risk of

loss, damages and confusions practices. The second, third, fourth and fifth statements garnered

asymptotic significance values of 0.682, 0.090, 0.072, and 0.682, respectively. The values are

above 0.05, which means there is no significant difference between the levels of adherence for

the respective practices among different years of operation groups. However, when it comes to

first statement the asymptotic significance value of 0.031, which falls below 0.05, signifies that

there is a significant difference between the level of adherence for the first practices. It can be

inferred that when it comes to examination of visible and concealed damages, longer years may

have built strong relationship with the supplier that they became lenient.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed risk of loss, damages and confusions practices when grouped ac-
 65

cording to years of operation. The level of adherence on the prescribed risk of loss, damages and

confusions practices does not vary across all groups of campus bookstores sampled.

3.3 Efforts to Sell

Table 14 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed efforts to sell practic-

es of university bookstores.

Table 14
Differences in the Level of Adherence on the Prescribed Efforts to Sell Practices when
Grouped According to Years of Operation

Prescribed Efforts Years of Mean Chi- Asymptotic Decision Interpretation

to Sell Practices Operation Rank Square Significance on HO
1. The bookstore
1-5 years 3.00
entices student de-
mand for the book
6-10 years 5.50
by proper position- Not Signifi-
3.000 0.392 Accept
ing and displaying 11-15 cant
of books. 6.33
years
16 years
8.00
and above

2. The bookstore 1-5 years 9.50

records the adver-
tising expenses in- 6-10 years 4.000
Not Signifi-
curred. (A Debit to 6.943 0.074 Accept
11-15 cant
Receivable from 6.00
years
Consignor and a
Credit to Cash) 16 years
2.00
and above

3. The bookstore is
requiring the pur- 1-5 years 2.75
chase of books as Not Signifi-
6.541 0.088 Accept
college academic cant
requirements for 6-10 years 6.00
the students.
 66

11-15
8.00
years

16 years
1.50
and above
4. The bookstore 1-5 years 4.00
agrees with the
consignors price 6-10 years 5.25
and is justifiable 11-15
years 6.50 Not Signifi-
enough to have a 1.969 0.579 Accept
cant
high demand for
the product for as- 16 years
and above 6.50
surance of high
volume sales.
5. The bookstore 1-5 years 7.50
staff has an oral
6-10 years 3.75
tradition of promot- Not Signifi-
11-15 3.687 0.297 Accept
ing the books and years 5.83 cant
courtesy to the stu- 16 years
dents. and above 7.50
Over-all 1-5 years 5.50
6-10 years 4.25
11-15 Not Signifi-
8.17 4.304 0.230 Accept
years cant
16 years
and above 2.50
At 0.05 Level of Significance

For the first practice, the mean ranking is highest for 16 years and above group which has

a mean rank of 8.00, followed by 11-15 years group which has 6.33, then 6-10 years groups

which has 5.50, and lastly, 1-5 years group which has the lowest mean rank of 3.00. The 16 and

above years group shows the full adherence of proper positioning and displaying of books as a

form of advertisement since their places have enough spaces to do so. The result shows that the

mean ranking is directly proportional to the most number of years operating of a bookstore

where the 1-5 years group garnered the lowest.

 67

For the second practice, the mean ranking is highest for 1-5 years group which has a

mean rank of 9.50, followed by 11-15 years group which has 6.00, then 6-10 years groups which

has 4.00, and lastly, 16 years and above group which has the lowest mean rank of 2.00. For the

group of 1-5 years, advertising expenses are still reimbursable from the consignor without any

limitations as it is always included on their terms and agreement. Groups 6-10 years and 11-15

years are adhering with limitations which means only selected consignors are charged against the

advertising expense. The 16 and above group shoulders all the advertising expense for all books

consigned since the bookstores are known for its availability of resources hence, advertisements

are no longer practiced by the consignors.

For the third practice, the mean ranking is highest for 11-15 years group which has a

mean rank of 8.00, followed by 6-10 years group which has 6.00, then 1-5 years groups which

has 2.75, and lastly, 16 years and above group which has the lowest mean rank of 1.50. Neither

the recently nor the later established bookstores, 1-5 years and 16 and above groups, are adhering

to the practice of purchasing requested books by college academic requirements as the students

have the decision to buy inside or outside the university premises and the 16 and above years

group are practicing to store the books consigned on a stockroom. The 1-5 years group is not tak-

ing risk of ordering sufficient number of books based on the number of students academically

required to purchase because some may purchase on the other stores and surplus may occur. On-

ly the 6-10 and 11-15 groups are following the policy as the bookstores have enough budget to

purchase and

For the fourth practice, the mean ranking is tie for 11-15 years and 16 years and above

groups, which have the highest mean ranks of 6.50, followed by 6-10 years group which has

5.25, and 1-5 years group which has the lowest mean rank of 4.00. The result shows that the
 68

mean ranking is directly proportional to the most number of years operating of a bookstore

where the 1-5 years group garnered the lowest and the 16 years and above group has the highest.

The consignors are aware that later established bookstores have a larger quantity of customers

that results to a higher volume of sales for them to be concerned of justifiable pricing with re-

gards to their capability of selling. On the other hand, the 1-5 years group is still introducing it-

self to the market and is not delivering a high sales volume.

For the fifth practice, the mean ranking is tie for 1-5 years and 16 years and above

groups, which have the highest mean ranks of 7.50, followed by 11-15 years group which has

5.83, and 6-10 years group which has the lowest mean rank of 3.75. The 1-5 years group is still

into oral tradition of promoting books through reaching the assistance from college deans and

professors to require the students purchase the books so the recently established group with low

budget compare to older bookstores will not carry the losses and surplus. The 16 years and above

group also practices an oral tradition of promotion to achieve the high volume of sales for a justi-

fiable pricing agreement with the consignor. Adherence with limitations is the result for the

groups of 6-10 and 11-15 years that only owned books are orally promoted that bring the risk of

loss if not sold and a higher profit if sold unlike the income from commission.

In overall, the mean ranking is highest for 11-15 years group which has a mean rank of

8.17, followed by 1-5 years group which has 5.50, then 6-10 years group which has 4.25, and

lastly 16 years and above group which has the lowest mean rank of 2.50. Therefore, the 11-15

years group has higher level of adherence compared to other years of operation groups. Accord-

ing to Silverberg and Glover (2014), campus stores operating for longer years as of today, tend to

innovate; and some cannot, due to resource unavailability.

 69

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed efforts to sell practices when grouped according to years of opera-

tion in all the statements. All bookstores sampled closely have the same internal and accounting

control when it comes to nearly all efforts to sell practices. The first, second, third, fourth and

fifth statements garnered asymptotic significance values of 0.392, 0.074, 0.088, 0.579, and 0.297,

respectively. The values are above 0.05, which means there is no significant difference between

the levels of adherence for the respective practices among different years groups.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed efforts to sell practices when grouped according to years of opera-

tion. The level of adherence on the prescribed efforts to sell practices does not vary across all

groups of campus bookstores sampled. All of the bookstores sampled have the same internal and

accounting control when it comes to efforts to sell regardless of the years of operation. All

bookstores have different marketing strategies to apply that are not related to the years of opera-

tion.

3.4 Payment, Sales and Commission

Table 15 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed payment, sales and

commission practices of university bookstores.

Table 15
Differences in the Level of Adherence on the Prescribed Payment, Sales and Commission
Practices when Grouped According to Years of Operation

Prescribed Pay- Years of Mean Chi- Asymptotic Decision Interpretation

ment, Sales and Operation Rank Square Significance on HO
Commission
Practices
1. The bookstore Not Signifi-
1-5 years 5.50 0.000 1.000 Accept
reconciles those re- cant
 70

ceived from what is

6-10 years 5.50
recorded at least
daily unless weekly 11-15
is more efficient. years 5.50
16 years
and above 5.50

2. The bookstore 1-5 years 6.50

remits proceeds of
sale of consigned
books to the con- 6-10 years 4.00
Not Signifi-
signor or to deposit 3.375 0.337 Accept
11-15 cant
them in a special 6.50
account on or before years
the period agree- 16 years
ment. and above 6.50

1-5 years 5.50

3. The bookstore
records sales of 6-10 years 5.50
consigned books as Not Signifi-
11-15 0.000 1.000 Accept
a Debit to Cash and 5.50 cant
a Credit to Payable years
to the Consignor. 16 years
and above 5.50
4. Notification of 1-5 years 5.50
sale, expense and
remittance are rec- 6-10 years 5.50
orded as Debit to
Payable to Con- 11-15
years 5.50 Not Signifi-
signor and a Credit 0.000 1.000 Accept
cant
to Commission In-
come and Cash un- 16 years
less receivable are and above 5.50
already deducted
from those due.
5. The bookstore 1-5 years 6.00
with the consignor
stipulates proper 6-10 years 4.75
agreement of com- 11-15
years 6.00 Not Signifi-
mission rate putting 1.500 0.682 Accept
cant
into consideration,
improvement of 16 years
and above 6.00
Sales as determinant
of commission rate.
Over-all 1-5 years 6.50 Not Signifi-
3.333 0.343 Accept
6-10 years 4.00 cant
 71

11-15
years 6.50
16 years
and above 6.50
At 0.05 Level of Significance

For the first practice, the mean ranking is tie for all years groups which have mean ranks

of 5.50. The meaning for level of adherence by all bookstores are practical in remittance and rec-

onciliation whereby the effectiveness and efficiency may be achieved but no fixed policy that

leads them to a weaker internal control.

For the second practice, the mean ranking is tie for all groups which have mean ranks of

6.50, except the 6-10 years group which has mean rank of 4.00. Therefore, the bookstores fully

adhere with the terms and agreement of the contract specifically the remittance policy the reason

why the previous results show a better relationship between the consignor and the bookstores.

The 6-10 years group that adheres with limitations which is also the exception for the delivery of

goods where the bookstore itself shoulders the delivery expense may be equated to a weak rela-

tionship with the consignor.

For the third practice, the mean ranking is tie for all years groups which have mean ranks

of 5.50. The same as the above results for a memorandum entry is prepared as the consigned

books are received, it is just normal that they contain the same entry when it comes to selling of

books consigned.

For the fourth practice, the mean ranking is tie for all years groups which have mean

ranks of 5.50. Since the memorandum entry and sales entry practices for above results are the

same, the practice for notification of sales, remittance, and expenses entry is also the same for all

groups hence, all bookstores are following only one pattern of entry and accounts.

For the fifth practice, the mean ranking is tie for all groups which have mean ranks of

6.00, except the 6-10 years group which has mean rank of 4.75. The same as the remittance on or
 72

before the agreed period, 6-10 years group are also adhering with limitations in terms of proper

agreement of commission rate that leads for a weaker relationship with the consignor. All

groups, except 6-10 years group, are following the return of goods on their agreed date.

In, overall, the mean ranking is tie for all groups which have mean ranks of 6.50, except

the 6-10 years group which has mean rank of 4.00. Therefore, all years of operation groups have

higher level of adherence compared to only 6-10 years group. According to Athitakis (2012),

experimenting ideas on how to improve commission schemes, like persuading the consignor to

give higher commission rate in compensation for higher volume of sales will result to a more

tight remittance chain policy to ensure protection of money. The 6-10 years group should focus

on this kind of practice.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed payments, sales, and commission when grouped according to years

of operation in all the statements. All bookstores sampled closely have the same internal and ac-

counting control when it comes to nearly all sales, payment, and commission. The first, second,

third, fourth and fifth statements garnered asymptotic significance values of 1.000, 0.337, 1.000,

1.000, and 0.682, respectively. The values are above 0.05, which means there is no significant

difference between the level of adherence for the respective practices among different years

groups.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed payments, sales, and commission when grouped according to years

of operation. The level of adherence on the prescribed payments, sales, and commission does not

vary across all groups of campus bookstores sampled. All bookstores sampled have the same ac-
 73

counting and internal control regardless of the years of operation since these are fixed terms and

significant matters (involves money) when it comes to consignment agreement.

3.5 Return of Products

Table 16 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed return of products

practices of university bookstores.

Table 16
Differences in the Level of Adherence on the Prescribed Return of Products Practices when
Grouped According to Years of Operation

Prescribed Return Years of Mean Chi- Asymptotic Decision Interpretation

of Products Prac- Operation Rank Square Significance on HO
tices
1. Defective books
1-5 years 6.50
that are seen or re-
turned by the stu-
6-10 years 4.00
dents are marked by Not Signifi-
3.375 0.337 Accept
the bookstore as de- 11-15 cant
fective and returned years 6.50
to the supplier im- 16 years
mediately. and above 6.50

1-5 years 6.50

2. The bookstore
with the consignor
properly agrees with 6-10 years 4.00
Not Signifi-
period of return and 0.000 1.000 Accept
11-15 cant
when the automati- 6.50
cally unsold goods years
will be returned. 16 years
and above 6.50
3. The bookstore
records a memoran- 1-5 years 5.50
dum entry when
there is a return of
Not Signifi-
product. (e.g 100 6-10 years 5.50 0.000 1.000 Accept
cant
units of books were
returned to the con- 11-15
years 5.50
signor due to in-
complete pages on 16 years 5.50
 74

January 15, 2016) and above

4. The bookstore 1-5 years 2.00
segregates books
returned properly 6-10 years 5.75
identified and
counted before the 11-15
years 7.00 Not Signifi-
date of return. De- 5.786 0.123 Accept
cant
livery controls are
taken into consider- 16 years
ation to eliminate and above 7.00
possible future re-
turn cost.
5. The bookstore 1-5 years 9.00
does not follow the
principle of No 6-10 years 4.00
Return, No Ex- 11-15
5.67 Not Signifi-
change policy un- years 6.143 0.105 Accept
cant
less stipulated in the
agreement. It is the 16 years
and above 4.00
duty and expense of
the consignor.
Over-all 1-5 years 8.50
6-10 years 3.25
11-15 Not Signifi-
6.67 5.323 0.150 Accept
years cant
16 years
and above 5.00
At 0.05 Level of Significance

For the first practice, the mean ranking is tie for all groups which have mean ranks of

6.50, except the 6-10 years group which has a mean rank of 4.00. Due to a weaker relationship

between the 6-10 years group and the consignor, the returned goods cannot be immediately re-

turned to its consignor which is a sign of not compliance to their terms and agreements. The rest

of the groups are fully adhering to this practice since they all have better relationship with their

consignors since they comply to all terms and agreements.

For the second practice, the mean ranking is tie for all years groups which have mean

ranks of 6.50, except the 6-10 years groups which has a mean rank of 4.00 The same as the re-

mittance on or before the agreed period, 6-10 years group are also adhering with limitations in
 75

terms of return of goods on agreed period that results for a weaker relationship with the con-

signor. All groups, except 6-10 years group, are following the return of goods on their agreed

date.

For the third practice, the mean ranking is tie for all years groups which have mean ranks

of 5.50. All groups fully adhere to this practice of memorandum entry since they are identical on

their entries for above results.

For the fourth practice, the mean ranking is tie for 11-15 years and 16 years and above

groups, which have the highest mean ranks of 7.00, followed by 6-10 years group which has

5.75, and 1-5 years group which has the lowest mean rank of 2.00. The level of adherence for the

practice of segregation of books to be returned is directly proportional to the number of years

operating by a bookstore. Since the 11-15 years and 16 years and above group observe a stronger

internal control, they are also the ones that fully adhere the practice. The 1-5 years group does

not adhere the practice because only few held book are on their areas and it is still recognizable

whether the books consigned are to be returned or not.

For the fifth practice, the mean ranking highest for the 1-5 years group which has a mean

rank of 9.00, followed by 11-15 years group which has 5.67, and then tie for both 6-10 and 16

years and above groups which have mean ranks of 4.00. The No return, No Exchange Policy is

not followed by the 1-5 years group since they are still building up a relationship with their cus-

tomers and the bookstores must be considerate in this kind of policy. The 6-10 years and 16

years and above groups are not adhering the practice because it is either they have strong rela-

tionship between the customers or a weak relationship between the consignors. The 11-15 years

group only adhere with limitations maybe because it depends on the fault whether they will ac-
 76

cept the return or exchange or not. Also, it depends on the consignor if they will shoulder the ex-

pense of return or exchange policy.

In overall, the mean ranking is highest for 1-5 years group which has a mean rank of

8.50, followed by 11-15 years group which has 6.67, then 16 years and above group which has

5.00, and lastly 6-10 years group which has the lowest mean rank of 3.25. Therefore, the 1-5

years group has higher level of adherence compared to other years of operation groups. Some

years of operation groups are more aware of the existing Uniform Commercial Code (UCC) and

some yet into implementing its policies. According to Wise (2010), return of products is a nor-

mal activity in the consignment agreement, but still some are stipulating terms to further favor

own efficiency. It is with the earliest registration of the 1-5 years group that they became aware

of the existing UCC, as this code is new to the consignment business.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed return of products practices when grouped according to years of op-

eration in all the statements. All bookstores sampled closely have the same internal and account-

ing control when it comes to nearly all return of products. The first, second, third, fourth and

fifth statements garnered asymptotic significance values of 0.337, 1.000, 1.000, 0.123, and 0.105,

respectively. The values are above 0.05, which means there is no significant difference between

the levels of adherence for the respective practices among different years of operation groups.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed return of products practices when grouped according to years of op-

eration. The level of adherence on the prescribed return of products practices does not vary

across all groups of campus bookstores sampled. All bookstores sampled have the same account-

ing and internal control when it comes to return of products regardless of years of operation since
 77

it is a normal activity in a business operation and the title of the books are still owned by the con-

signor and not part of the asset of the bookstore.

3.6 Termination

Table 17 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed termination practices

of university bookstores.

Table 17
Differences in the Level of Adherence on the Prescribed Termination Practices when
Grouped According to Years of Operation

Prescribed Termi- Years of Mean Chi- Asymptotic Decision Interpretation

nation Practices Operation Rank Square Significance on HO
1. The bookstore 1-5 years 6.50
returns all unsold
copies at the termi- 6-10 years 5.25 Not Signifi-
nation of consign- 1.031 0.794 Accept
11-15 cant
ment period in the 4.83
years
same quality as it
16 years
was delivered. 6.50
and above

1-5 years 3.00

2. The bookstore
follows the amount
of time given by the 6-10 years 5.50
Not Signifi-
supplier to return 3.000 0.392 Accept
11-15 cant
the books after the 6.33
termination of years
agreement. 16 years
and above 8.00
3. The bookstore
records a memoran- 1-5 years 6.00
dum entry for return
Not Signifi-
of unsold copies of 1.500 0.682 Accept
cant
books (e.g. termina-
tion of contract with 6-10 years 4.75
supplier A. 120 un-
 78

sold goods are re-

turned and allocated 11-15
years 6.00
collection was re-
mitted January 31,
16 years
2016) 6.00
and above
4. The bookstore 1-5 years 1.50
segregates books
returned properly 6-10 years 6.50
identified and
counted before the 11-15
years 6.50
date of return. De-
9.000 0.029 Reject Significant
livery controls are
taken into consid-
eration to eliminate 16 years
and above 6.50
possible future re-
turn cost. (During
termination)
5. The bookstore 1-5 years 6.00
terminates the con- 6-10 years 4.75
tract with justifiable 11-15 Not Signifi-
1.500 0.682 Accept
and proof-based to years 6.00 cant
who breaches the
16 years
contract. 6.00
and above
Over-all 1-5 years 2.00
6-10 years 5.38
11-15 Not Signifi-
7.00 4.837 0.184 Accept
years cant
16 years
and above 8.50
At 0.05 Level of Significance

For the first practice, the mean ranking is tie for both 1-5 and 16 years and above groups,

which have the highest mean ranks of 6.50, followed by 6-10 years group who has 5.25, and 11-

15 years group which has the lowest mean rank of 4.83. The 16 years and above group fully ad-

heres the return of unsold books on termination as the bookstore runs for many years and main-

tains a good background and reputation with its consignors. The 1-5 years group also does the

same because the bookstore is still building relationship with the consignors and must avoid rifts

and conflicts that might its future transactions. The 6-10 years and 11-15 years groups are adher-
 79

ing with limitations because of various situations such as the bookstores opt to purchase the re-

maining unsold products or a rift has arisen with the consignor that results to termination which

disables the bookstore to return the products.

For the second practice, the mean ranking is highest for 16 years and above group which

has a mean rank of 8.00, followed by 11-15 years group which has 6.33, then 6-10 years groups

which has 5.50, and lastly, 1-5 years group which has the lowest mean rank of 3.00. The 1-5

years group does not follow the practice since the bookstore always exceeds the time limit due to

unsold books that lead to a lower commission. The starting bookstores are not popular in the

market to have a high volume of sales immediately. Adhering with limitations is the result of

groups 6-10 years and 11-15 years since not all the books consigned are being returned on due

time because the number of students required academically to purchase is not yet completed. A

protected good background and reputation must be maintained by the group 16 years and above

as they garnered the highest mean rank.

For the third practice, the mean ranking is tie for all groups which have mean ranks of

6.00, except the 6-10 years group which has a mean rank of 4.75. All groups are adhering in the

practice of memorandum entry since they follow the same pattern of entries as shown above re-

sults except the 6-10 years group that failed to have a good relationship with the consignors that

contains limitations in this practice.

For the fourth practice, the mean ranking is tie for all groups which have mean ranks of

6.50, except the 1-5 years group which has a mean rank of 1.50. All groups are committed to fol-

low the practice of segregation before the return date due to termination except the 1-5 years

group that contains a low volume of books that are still recognizable since the bookstore is start-

ing
 80

For the fifth practice, the mean ranking is tie for all groups which have mean ranks of

6.00, except the 6-10 years group which has a mean rank of 4.75. The same as the third practice,

all bookstores present a justifiable proof that caused termination except the 6-10 years group that

most of the time the bookstore does not follow the terms and agreement on the contract signed

with the consignors.

In overall, the mean ranking is highest for 16 years and above group which has a mean

rank of 8.50, followed by 11-15 years group which has 7.00, then 6-10 years group which has

5.38, and lastly 1-5 years group which has the lowest mean rank of 2.00. Therefore, the 16 years

and above group have higher level of adherence compared to other years of operation groups.

The 16 years and above group has already encountered bulk of termination practices that it be-

came aware of its ins and outs. Some years of operation groups, especially longer years, already

encounter a formal termination agreement from operational experience. Some encounter near a

formal termination agreement, and still find ways on how to continue the business endeavor.

Some already know the ins and outs of termination, while some are still into understanding its

effects and procedures. Some respondents answer the queries theoretically. Bookstore sampled

with longer years of operation may have experienced it but still have implemented policies re-

garding termination while bookstore sampled with shorter years may just implement policies re-

garding termination without experiencing it.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed termination practices when grouped according to years of operation

in all the statements, except the fourth statement. All bookstores sampled closely have the same

internal and accounting control when it comes to nearly all termination practices. The first, sec-

ond, third, and fifth statements garnered asymptotic significance values of 0.794, 0.392, .0682,
 81

and 0.682, respectively. The values are above 0.05, which means there is no significant differ-

ence between the levels of adherence for the respective practices among different years of opera-

tion groups. However, when it comes to fourth statement the asymptotic significance value of

0.029, fall below 0.05, signifies that there is a significant difference between the levels of adher-

ence for the fourth practices.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed termination practices when grouped according to years of operation.

The level of adherence on the prescribed termination practices does not vary across all groups of

campus bookstores sampled. All bookstores sampled have the same accounting and internal con-

trol when it comes to termination regardless of years of operation, except in the proper segrega-

tion of books to be returned due to termination since some of the bookstore sampled have not yet

experienced the actual termination due to years of operation.

3.7 Legal items

Table 18 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed legal items practices

of university bookstores.

Table 18
Differences in the Level of Adherence on the Prescribed Legal items Practices when
Grouped According to Years of Operation

Prescribed Legal Years of Mean Chi- Asymptotic Decision Interpretation

items Practices Operation Rank Square Significance on HO
1. The bookstore
1-5 years 3.75
cancels the con-
signment by giving
6-10 years 5.50
notice in writing, if Not Signifi-
4.250 0.236 Accept
the consignor is un- 11-15 cant
able to deliver the years 7.83
consignment within 16 years
a reasonable period and above 2.00
 82

after giving notice

under delay of de-
livery. (Force
Majeure)
2. All notices are 1-5 years 6.00
duly signed by the
bookstore, or on be-
half of the party, 6-10 years 4.75
Not Signifi-
giving it and are 1.500 0.682 Accept
11-15 cant
served by delivering 6.00
it personally or vir- years
tually to the relevant 16 years
party. and above 6.00

3. The consignment
1-5 years 6.00
agreement properly
sets forth law and
jurisdiction that are 6-10 years 4.75 Not Signifi-
1.500 0.682 Accept
to be construed and 11-15 cant
performed in ac- years 6.00
cordance with the 16 years
Philippine Law. and above 6.00

4. The consignment 1-5 years 6.50

agreement is put in
to writing properly 6-10 years 4.00
Not Signifi-
signed for and on 11-15 3.375 0.337 Accept
6.50 cant
behalf of the con- years
signor and the con- 16 years
signee. and above 6.50
5. The bookstore 1-5 years 8.50
properly records
special accounts ac- 6-10 years 3.50
11-15 Not Signifi-
cording to classifi- 6.500 0.090 Accept
years 5.17 cant
cation (e.g. special
kinds of commis- 16 years
8.50
sion Del Grede) and above
Over-all 1-5 years 6.25
6-10 years 3.88
11-15 Not Signifi-
7.50 2.943 0.401 Accept
years cant
16 years
and above 4.50
At 0.05 Level of Significance
 83

For the first practice, the mean ranking is highest for 11-15 years and above group which

has a mean rank of 7.83, followed by 6-10 years group which has 5.50, then 1-5 years groups

which has 3.75, and lastly, 16 years and above group which has the lowest mean rank of 2.00.

The 16 years and above group does not cancel the orders due to delay because they already have

strong relationships among customers and the books can still be distributed on the other date

with supporting explanations and apology for the delay. The 1-5 years group is still building up

relationship with the consignor so they cannot easily cancel the order due to shallow reason of

delay. The remaining groups fully adhere with the practice since they are following the academic

requirement books for students that must be received on the agreed period of time.

For the second practice, the mean ranking is tie for all groups which have mean ranks of

6.00, except the 6-10 years group which has a mean rank of 4.75. The result shows that 6-10

years group is the only exception due to its non-compliance to the terms and agreement with the

consignors. Also, it leads them to a weaker relationship with the consignors unlike the rest of the

groups having better relationships among consignors.

For the third practice, the mean ranking is tie for all groups which have mean ranks of

6.00, except the 6-10 years group which has a mean rank of 4.75. The result shows that 6-10

years group is the only exception due to its non-compliance to the terms and agreement with the

consignors. Also, it leads them to a weaker relationship with the consignors unlike the rest of the

groups having better relationships among consignors.

For the fourth practice, the mean ranking is tie for all groups which have mean ranks of

6.50, except the 6-10 years group which has a mean rank of 4.00. The result shows that 6-10

years group is the only exception due to its non-compliance to the terms and agreement with the
 84

consignors. Also, it leads them to a weaker relationship with the consignors unlike the rest of the

groups having better relationships among consignors.

For the fifth practice, the mean ranking is tie for 1-5 and 16 years and above groups

which have mean ranks of 8.50, followed by 11-15 years group which has 5.17, and 6-10 years

group which has the lowest mean rank of 3.50. Special accounts can still be organized properly

at the early years of the bookstore, 1-5 years group. Yet, the 16 and above years group fully ad-

heres the practice of special accounts since they are taking care of the good relationship among

consignors and regular customers. The remaining groups simply adhere with limitations because

most of the accounts used are ordinary for a normal operation of bookstores.

In overall, the mean ranking is highest for 11-15 years group which has a mean rank of

7.50, followed by 1-5 years group which has 6.25, then 16 years and above group which has

4.50, and lastly 6-10 years group which has the lowest mean rank of 3.88. Therefore, the 11-15

years group has the highest level of adherence compared to other years of operation groups.

Some years of operation groups follow a more complex form of commission scheme, especially

the 11-15 years group, which is evident during the interview, while others, when it fact they need

to have, does not possess the complexity required of the circumstances. For example, according

to Blacks Law Dictionary (2014), Del Credere commission is a commission given to the con-

signee for guarantying the payment of goods if the buyer cannot pay. Some bookstores guaranty

payment when buyer cannot pay, but does not have this kind of commission in their agreement.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed legal items practices when grouped according to years of operation

in all the statements. All bookstores sampled closely have the same internal and accounting con-

trol when it comes to nearly all legal items practices. The first, second, third, fourth and fifth
 85

statements garnered asymptotic significance values of 0.236, 0.682, 0.682, 0.337, and 0.090, re-

spectively. The values are above 0.05, which means there is no significant difference between

the level of adherence for the respective practices among different years groups.

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed legal items practices when grouped according to years of operation.

The level of adherence on the prescribed legal items practices does not vary across all groups of

campus bookstores sampled. All bookstores sampled have the same accounting and internal con-

trol when it comes to legal items regardless of years of operation since legal items are written in

the law, universities should follow formalities and provisions stated by the law in their consign-

ment agreement regardless their years of operation. Bookstore sampled with longer years may be

more familiar with these legal items because they have longer experience in the business than the

bookstore sampled with shorter years.

3.8 Over-all

Table 19 shows the mean, Chi-Square, Asymptotic Significance, decision on HO and in-

terpretation of different groups on the level of adherence on the prescribed consignment practices

of university bookstores.

Table 19
Differences in the Level of Adherence on the Prescribed Consignment Practices when
Grouped According to Years of Operation

Prescribed Years of Mean Chi- Asymptotic Decision Interpretation

Consignment Operation Rank Square Significance on HO
Practices
1-5 years 1.50
Delivery of
7.404 0.060 Accept Not Significant
Goods
6-10 years 5.00
 86

11-15 years 8.00

16 years 8.00
and above

1-5 years 1.50

Risk of Loss, 6-10 years 6.00

Damages and 6.191 0.103 Accept Not Significant
Confusions 11-15 years 8.00

16 years
4.00
and above

1-5 years 5.50

6-10 years 4.25

Efforts to Sell 4.304 0.230 Accept Not Significant
11-15 years 8.17
16 years
2.50
and above
1-5 years 6.50
6-10 years 4.00
Payment, Sales
3.333 0.343 Accept Not Significant
and Commission 11-15 years 6.50
16 years
6.50
and above
1-5 years 8.50
6-10 years 3.25
Return of Prod-
11-15 years 6.67 5.323 0.150 Accept Not Significant
ucts
16 years
5.00
and above
1-5 years 2.00
6-10 years 5.38
Termination 11-15 years 7.00 4.837 0.184 Accept Not Significant
16 years
8.50
and above
1-5 years 6.25
Legal items 2.943 0.401 Accept Not Significant
6-10 years 3.88
 87

11-15 years 7.50

16 years
4.50
and above
1-5 years 2.25
6-10 years 4.38 Not Signifi-
Over-all 11-15 years 9.00 6.935 0.074 Accept
cant
16 years
and above 6.00
At 0.05 Level of Significance

In terms of level of adherence on the prescribed delivery of goods practices, in overall,

the mean ranking is tie for 11-15 and 16 years and above groups, which have the highest mean

ranks of 8.00, followed by 6-10 years group with 5.00 and the 1-5 years group which has the

lowest mean rank of 1.50.

In term of level of adherence on the prescribed risk of loss, damages and confusions, in

overall, the mean ranking is highest for 11-15 years group which has a mean rank of 8.00, fol-

lowed by 6-10 years group which has 6.00, then 16 years and above years groups which has

4.00, and lastly 1-5 years group which has the lowest mean rank of 1.50.

In term of level of adherence on the prescribed efforts to sell, in overall, the mean ranking

is highest for 11-15 years group which has a mean rank of 8.17, followed by 1-5 years group

which has 5.50, then 6-10 years group which has 4.25, and lastly 16 years and above group

which has the lowest mean rank of 2.50.

In term of level of adherence on the prescribed payment, sales and commission, in over-

all, the mean ranking is tie for all groups which have mean ranks of 6.50, except the 6-10 years

groups which has a mean rank of 4.00.

In terms of level of adherence on the prescribed return of products, in overall, the mean

ranking is highest for 1-5 years group which has a mean rank of 8.50, followed by 11-15 years
 88

group which has 6.67, then 16 years and above group which has 5.00, and lastly 6-10 years

group which has the lowest mean rank of 3.25.

In terms of level of adherence on the prescribed termination, in overall, the mean ranking

is highest for 16 years and above group which has a mean rank of 8.50, followed by 11-15 years

group which has 7.00, then 6-10 years group which has 5.38, and lastly 1-5 years group which

has the lowest mean rank of 2.00.

In terms of level of adherence on the prescribed legal items, in overall, the mean ranking

is highest for 11-15 years group which has a mean rank of 7.50, followed by 1-5 years group

which has 6.25, then 16 years and above group which has 4.50, and lastly 6-10 years group

which has the lowest mean rank of 3.88.

In terms of level of adherence on the prescribed consignment practices, the mean ranking

is highest for 11-15 years group which has a mean rank of 9.00, followed by 16 years and above

group which has 6.00, then 6-10 years group which has 4.38, and lastly 1-5 years group which

has the lowest mean rank of 2.25.

Additionally, as also shown in the table, there is a no significant difference in the level of

adherence on the prescribed consignment practices when grouped according to years of operation

in all the categories. All bookstores sampled closely have the same internal and accounting con-

trol when it comes to all consignment practices. The first, second, third, fourth, fifth, sixth, and

seventh categories garnered asymptotic significance values of 0.060, 0.103, 0.230, 0.343, 0.150,

0.184, 0.401, 0.074, respectively. The values are above 0.05, which means there is no significant

difference between the levels of adherence for the respective practice categories among different

years of operation groups.

 89

In summary, the over-all result shows that there is no significant difference in the level of

adherence on the prescribed consignment practices when grouped according to years of opera-

tion. The level of adherence on the prescribed consignment practices does not vary across all

groups of campus bookstores sampled. The foregoing categories are statements stipulated in the

consignment agreement and are not dependent to the years of operation of the university

bookstore sampled. However, if you look at individual items per category there are some items

that are dependent to years of operation as these items are controls that depend on the discretion

of the universities and their relationship with the supplier.

 90

CHAPTER V

Summary of Findings, Conclusion and Recommendation

Summary of Findings

The research obtained the following results:

1.1 The researchers had ten (10) respondents. Most of them were operating for 6-10

years. It suggests that most of the respondents were just recently established due to increase in

student population that affirms to having a campus bookstore.

The following enumerates the summary of findings with regards to the level of adherence on the

prescribed consignment practices in terms of delivery of goods; risk of loss, damages and confu-

sions; efforts to sell; payment, sales and commissions; return of products; termination; and legal

items:

2.1 Based from the results of the analysis using weighted means on the delivery of goods

practices, it was determined that the composite mean on this criterion was 2.84 which can be de-

scribed as Adhere. It has a standard deviation of 0.21. Moreover, it suggests that the

bookstores sampled have Very High Level of adherence with the prescribed delivery of goods

practices.

2.2 Based from the results of the analysis using weighted means on the risk of loss, dam-

ages and confusions practices, it was determined that the composite mean on this criterion was

2.62 which can be described as Adhere. It has a standard deviation of 0.43. Moreover, it sug-

gests that the bookstores sampled have Moderately High Level of adherence with the pre-

scribed risk of loss, damages and confusions practices.

 91

2.3 Based from the results of the analysis using weighted means on the efforts to sell

practices, it was determined that the composite mean on this criterion was 2.42 which can be de-

scribed as Adhere with Limitations. It has a standard deviation of 0.26. Moreover, it suggests

that the bookstores sampled have Moderately High Level of adherence with the prescribed ef-

forts to sell practices.

2.4 Based from the results of the analysis using weighted means on the payment, sales

and commission practices, it was determined that the composite mean on this criterion was 2.94

which can be described as Adhere. It has a standard deviation of 0.13. Moreover, it suggests

that the bookstores have Very High Level of adherence with the prescribed payment, sales and

commission practices.

2.5 Based from the results of the analysis using weighted means on the return of products

practices, it was determined that the composite mean on this criterion was 2.62 which can be de-

scribed as Adhere. It has a standard deviation of 0.22. Moreover, it suggests that the

bookstores sampled have Moderately High Level of adherence with the prescribed return of

products practices.

2.6 Based from the results of the analysis using weighted means on the termination prac-

tices, it was determined that the composite mean on this criterion was 2.74 which can be de-

scribed as Adhere. It has a standard deviation of 0.27. Moreover, it suggests that the

bookstores sampled have Moderately High Level of adherence with the prescribed termination

practices.

2.7 Based from the results of the analysis using weighted means on the legal items prac-

tices, it was determined that the composite mean on this criterion was 2.60 which can be de-

scribed as Adhere. It has a standard deviation of 0.33. Moreover, it suggests that the
 92

bookstores sampled have Moderately High Level of adherence with the prescribed legal items

practices.

2.8 Based from the results of the analysis using weighted means on the over-all consign-

ment practices, it was determined that the composite mean on this criterion was 2.68 which can

be described as Adhere. It has a standard deviation of 0.15. Moreover, it suggests that the

bookstores sampled have Moderately High Level of adherence with the prescribed consign-

ment practices.

The following enumerates the summary of the findings with regards to the differences on the

level of adherence on the prescribed consignment practices when grouped according to years of

operation:

3.1 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed delivery of goods practices when grouped ac-

cording to years of operation, it showed a Chi Square of 1.969, 1.500, 0.000, 5.786, and 9.000

for the first, second, third, fourth, and fifth statements, respectively. The highest mean rank is for

11-15 and 16 years and above group. Moreover, in overall, it showed a Chi Square of 7.404, and

it also shows that there is no significant difference on the level of adherence on the prescribed

delivery of goods practices when grouped according to years of operation.

3.2 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed risk of loss, damages and confusions practices

when grouped according to years of operation, it showed a Chi Square of 8.889, 1.500, 6.500,

7.000, and 1.500 for the first, second, third, fourth, and fifth statements, respectively. The highest

mean rank is for 11-15 years group. Moreover, in overall, it showed a Chi Square of 6.191, and it
 93

also shows that there is no significant difference on the level of adherence on the prescribed risk

of loss, damages and confusions practices when grouped according to years of operation.

3.3 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed efforts to sell practices when grouped according

to years of operation, it showed a Chi Square of 3.000, 6.943, 6.541, 1.969, and 3.687 for the

first, second, third, fourth, and fifth statements, respectively. The highest mean rank is for 11-15

years group. Moreover, in overall, it showed a Chi Square of 4.304, and it also shows that there

is no significant difference on the level of adherence on the prescribed efforts to sell practices

when grouped according to years of operation.

3.4 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed payment, sales and commission practices when

grouped according to years of operation, it showed a Chi Square of 0.000, 3.375, 0.000, 0.000,

and 1.500 for the first, second, third, fourth, and fifth statements, respectively. The highest mean

rank is for all groups, except 6-10 years. Moreover, in overall, it showed a Chi Square of 3.333,

and it also shows that there is no significant difference on the level of adherence on the pre-

scribed payment, sales and commission practices when grouped according to years of operation.

3.5 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed return of products practices when grouped ac-

cording to years of operation, it showed a Chi Square of 3.375, 0.000, 0.000, 5.786, and 6.143

for the first, second, third, fourth, and fifth statements, respectively. The highest mean rank is for

1-5 years group. Moreover, in overall, it showed a Chi Square of 5.323, and it also shows that

there is no significant difference on the level of adherence on the prescribed return of products

practices when grouped according to years of operation.

 94

3.6 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed termination practices when grouped according to

years of operation, it showed a Chi Square of 1.031, 3.000, 1.500, 9.000, and 1.500 for the first,

second, third, fourth, and fifth statements, respectively. The highest mean rank is for 16 years

and above group. Moreover, in overall, it showed a Chi Square of 4.837, and it also shows that

there is no significant difference on the level of adherence on the prescribed termination practic-

es when grouped according to years of operation.

3.7 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed legal items practices when grouped according to

years of operation, it showed a Chi Square of 4.250, 1.500, 1.500, 3.375, and 6.500 for the first,

second, third, fourth, and fifth statements, respectively. The highest mean rank is for 11-15 years

group. Moreover, in overall, it showed a Chi Square of 2.943, and it also shows that there is no

significant difference on the level of adherence on the prescribed legal items practices when

grouped according to years of operation.

3.8 Based from the results of the analysis using Kruskall-Wallis H test to test the differ-

ence in the level of adherence on the prescribed consignment practices when grouped according

to years of operation, it showed a Chi Square of 7.404, 6.191, 4.304, 3.333, 5.323, 4.837, and

2.943 for the first, second, third, fourth, fifth, sixth and seventh consignment practice categories,

respectively. The highest mean rank is for 11-15 years group. Moreover, in overall, it showed a

Chi Square of 6.935, and it also shows that there is no significant difference on the level of ad-

herence on the prescribed consignment practices when grouped according to years of operation.
 95

Conclusion

Through an extensive analysis of the data gathered, the researchers have concluded the

following:

1. Based on the result on this survey, the researchers have concluded that there are more

bookstores that are operating for 6-10 years as of date of data gathering than those operating for

longer or shorter years. It can be concluded that most of the bookstores in National Capital Re-

gion, owned by the university itself, that uses consignment, and have the target population most-

ly are just recently established.

2. In general, as the mean increases, the standard deviation increases, and vice versa. In

other words, there is an inverse relationship between the average scores of the bookstores sam-

pled and the scattering of responses that compose the average. So as the level of adherence for a

particular prescribed practice increases, bookstores tend to have the same responses; and vice-

versa. A very high level of adherence interpretation of a prescribed practice denotes that almost

all bookstores sampled can be defined as having the same level of adherence. In contrary, a mod-

erately high level of adherence interpretation of a prescribed practice denotes that bookstores

sampled tend to be defined as having a higher or lower level of adherence than moderate, than

almost purely moderate. The highest mean is obtained by delivery of goods, and payment, sales

and commission practices categories; while the lowest mean is obtained by efforts to sell practic-

es category. It can be concluded that delivery of goods, and payment, sales and commission prac-

tices categories are major internal and accounting control categories of a consignment business,

respectively. On the other hand, efforts to sell is a more business-discretionary consignment

practices category, since it involves each bookstores own marketing strategy.

 96

Therefore, bookstores sampled have a good foundation in the consignment business set-

ting, while they still have to know also the very basic of the marketing dimension of the con-

signment business to add more value to the university bookstore itself.

3. In overall, the years of operation was independent with the level of adherence on the

prescribed consignment practices of bookstores sampled. These variables indicate that different

years of operation groups have different level of adherence but doesnt differ that much. In over-

all, the 11-15 years group has the highest level of adherence compared to other years of opera-

tion groups, while the lowest is the 1-5 years of operation group. With this, it can be concluded

that the longer the bookstore is operating, the more it tends to adhere with the prescribed con-

signment practices. In addition, two categories have ties in mean rankings, and noticeably they

are both the major accounting and internal control categories. Since mean ranks of years of oper-

ation groups under the payment, sales and commission category is almost tie for all groups, ex-

cept the mid group 6-10 years. It can be concluded that as a major accounting category, regard-

less of the years of operation, bookstores sampled take into consideration and prioritize signifi-

cant matters which involve the foundation of accounting in the consignment business. Moreover,

the mean ranks of years of operation groups under the delivery of goods category is tie for the

11-15 and 16 years and above. It can be concluded that the longer the year the bookstore is oper-

ating, the more its major internal control (delivery of goods) foundation is fully established.

However, it can be noticed that the termination categorys mean ranking of different

years of operation is in a descending sequence from 16 years and above as highest to 1-5 years as

lowest. It can be concluded and further justified that the more the bookstore already encounters a

repeated actual termination activity, the more it tends to have a high level of adherence due to

their exposure and operational experience regarding the termination activities of the consignment
 97

business. It can also be noticed that the two lowest level of adherence categories as discussed

above, efforts to sell and termination have almost the same mean ranking from 11-15 to 6-10 as

highest and lowest, respectively. Since both categories are the most discretionary to each

bookstore policies and marketing strategies compared to other consignment practices category, a

parallelism should therefore be evident.

Lastly, the mean and standard deviation inverse relationship can be related to the tying of

different years of operation groups. It can be concluded and further justified that as the level of

adherence (or the mean) increases, the scattering of responses across different years of operation

groups become more compress, and vice-versa. It is evident because, the two highest level of ad-

herence group have both a tie on them, and the two lowest or the rest lower than the two highest

have a complete ranking of the four years of operation groups, or the responses tend to be more

scattered across different years of operation groups.

Recommendations

The following are the recommendations developed from thorough consideration of ob-

tained results:

To the university bookstores sampled (generally the Finance department)

1. A moderately high level of adherence, in overall, suggests a further improvement of

consignment practices of selected university bookstores in National Capital Region.

1.1 It is recommended for them to maintain their existing delivery of goods practices.

Moreover, to achieve a more established policy it is recommended that the bookstores receive

the initial list prices together with the signed agreement after examining all items delivered. It is

also recommended for them to maintain their existing payment, sales and commission practices.
 98

These should be taken seriously as these two categories are the major accounting and internal

control facets of the consignment business.

1.2 a. On the other side, it is recommended for them to improve their existing risk of loss,

damages and confusions practices by checking and examining books for visible signs of damage

or loss, or if more efficient, for a fixed date of checking and segregating books wholly owned

form those not to avoid confusion, or if more efficient, doing this by labelling those owned a

separate code for those not owned. Lastly, is to insure books against all risk and contingencies,

or if more efficient, with partnership to consignor or the university finance section.

b. It is recommended for them to improve their existing efforts to sell practices by entic-

ing students demand through positioning and displaying of books properly; recording and recog-

nizing properly advertising expense; having oral tradition of promoting books; and by requiring

purchase of books as college academic requirement for students, or if more efficient, as clear-

ance. This should also be taken seriously as this category is the basic foundation of the marketing

and profitability facets of the consignment business.

c. It is recommended for them to improve their existing return of products practices by

always segregating after identifying books to be returned (having controls along the process) and

most specially, unfollowing the No Return, No Exchange policy, this is a law given by Bureau

of Internal Revenue (BIR).

d. It is recommended for them to improve their existing termination practices by follow-

ing adherently the time given by consignor for proper flow of termination and again by segregat-

ing after identifying books to be returned (this time during termination agreements).

e. Lastly, it is recommended for them to improve their existing legal items practices by

properly recording special accounts (to be incorporated in the agreement) and specially by giving
 99

notice every time the consignor fails to deliver goods when a reasonable time is at essence (can-

cel the delivery or change terms).

1.3 Due to an expected increase in future level of adherence from the recommendations

above, bookstores responses tend to be closer to each other (as concluded), meaning more har-

monization. It is recommended that after following these recommendations, bookstores should

take a look into monitoring if it is still followed either as a fixed policy or even a requisite for a

more successful and profitable performance of the business. A wrong doing of an individual

bookstore damages the foundation of harmonization.

2. Bookstores by themselves should study industry practices as this will serve as bench-

mark for their standing in the consignment business. The output of the study can serve as a start-

ing point of comparison.

2.1 Since, there is no significant difference between the level of adherence on the pre-

scribed consignment practices when the bookstores are grouped according to years of operation,

the recommendations given above are general, or applicable to all years of operation groups.

However, to specify it is recommended; especially (they got the lowest ranks) for the 1-5 years

of operation group to focus more on improving most importantly (a major category) delivery of

goods; then risk of loss, damages and confusions; and termination practices; as they are left be-

hind compared to other groups.

2.2 It is recommended for the 6-10 years of operation group to focus more on improving

most importantly (a major category) payment, sales and commission; then return of products;

and legal items practices as they are left behind compared to other groups.
 100

2.3 It is recommended for the 11-15 years of operation group to; however (they almost

got the highest ranks), focus more on improving return of products and termination practices as

compared to close contender in the industry they are left behind.

2.4 It is recommended for the 16 years and above group to focus more on improving their

risk of loss, damages and confusions; most importantly efforts to sell (they got the lowest rank);

return of products; and legal items practices as compared to close contender in the industry they

are left behind.

2.5 Lastly, the 1-5, 6-10 and 16 and above years of operation groups to further improve

their existing consignment practices as they are left behind as compared to 11-15 years of opera-

tion group. Harmonization can further be improved so long as the mean ranking for all years of

operation groups are nearly the same.

2.6 This study recommends the bookstore must adhere all the practices provided in the

questionnaire for their own benefits regardless the number of years operated. For the bookstores

that adhere regardless to the years operated specifically the 6-10 years group, it is recommended

that the bookstores must comply with the terms and agreement between the consignors where the

failure of harmonization occurs where all remaining groups garnered same result. Moreover, the

two longest running groups of bookstores, 11-15 years and 16 years and above harmonize with

each other that share more compressed answers and closer result. The study is concerned to the

bookstores starting to operate, 1-5 years and 6-10 years, and it suggests adhering the practices

they garnered the lowest or differently among others.

3. These recommendations will be subjected to different bookstores discretionary deci-

sion on whether these will be applicable to their business setting; however, as these practices are

prescribed it is highly recommended.

 101

4. Results from this study will serve as component of bookstore yearly monitoring activi-

ty. Staff training and orientation can be done to ensure that consignment accounting and internal

controls as prescribed are being adhered perpetually. Industry averaging can be done to help the

finance department, as the main branch of the bookstore, to adapt or replicate the practices rec-

ommended by the researcher, according to their own efficiency and effectiveness viewpoints.

To the academe specially in accounting (and students)

We recommend giving importance to the consignment topic in the Advanced Accounting

Two and Auditing Theory course for business students since they were the future accountants

and auditors and they must have an extensive or additional knowledge on the accounting and in-

ternal control basics of consigned goods. It is to be noted that according to Athitakis (2012),

nowadays, consigned goods form the largest part among the inventories held by most merchan-

dising retailers and some manufacturing companies around the world. Additional lecture time

can be given to this topic in order to give students realization between the real and theoretical

accounting consignment business setting that they can just enhance or update when they are al-

ready in the field practicing what they have learned.

To the future researchers

We recommend continuing working on this research as one of the goal of this research is

to further achieve harmonization among different university bookstores around the Philippines.

They can use university bookstores from different parts of the Philippines using the results of

this study as comparative basis. Or they can think of other grouping variables for more thorough

and new dimensions of comparison and other dimensions of the consignment business, aside

from accounting procedures and internal control. Will geographical location affect the level of
 102

adherence? Or will number of books consigned affect it? Will years of operation affect the level

of adherence on the prescribed supply chain management of university bookstores?

To the consignor (or distributor)

Consignment involves both consignor and consignee; it is a mutual agreement between

the two. A breach of contract from one of them will terminate the agreement, subject to justifia-

ble proceedings. Conversely, a low level of adherence constitutes a future breach of contract, due

to future misconception of what is expected and actually portrayed by the consignee. The con-

signor should be very careful on choosing who to consign their goods at, and who to not. Moreo-

ver, the results from this study will also serve as gauge for monitoring bookstores performance.
 103

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 106

Simple Studies, Accounting Made Simple (2015). Accounting for Consigned Goods. Retrieved

from http://simplestudies.com/accounting-for-consigned-goods.html/page/4

Tan, Charles (2010). Book Distribution in the Philippines. Retrieved from http://charles-

tan.blogspot.com/2007/07/book-distribution-in-philippines.html

The Style List. Consignment Agreement. Retrieved from

http://www.thestylelistla.com/consignment-agreement/

What You Should Know. What You Should Know About Loss and Damage Claims. Retrieved

from http://my.yrc.com/national/help/tools_claims3.html#Consignee

Wise, Aaron N. (2010). Placing Your Goods On Consignment With Your American Business

Partner: What the Foreign Exporter and Its Financing Bank or Factor Should Know. Re-

trieved from http://www.gdblaw.com/siteFiles/526cbb41-0cb6-4284-9aac-

c9feb26de48c/custom/files/PlacingGoods_Eng.pdf
 107

Appendix A
108
109
 110

Appendix B
 111

PRESCRIBED CONSIGNMENT PRACTICES QUESTIONNAIRE

Respondent Code No.________

SURVEY

Good day! I would like to get your honest opinion related to your activity, which will only take
five minutes of your time. Rest assured that everything stated here will be treated with utmost
confidentiality. These will be used solely as inputs for the course requirement in Business Re-
search.
Begas, Dan Paul C.
Corona, Renz Mico F.
Cruz, Christine Angela B.
Maca-alin, Allaniah H.
Palustre, Red Christian L.

PART A. Demographic Questionnaire

A.1 Years of operation

1-5 yrs.
6-10 yrs.
10-15 yrs.
16 yrs. and above

Directions: Please select the answers that best express your judgment of each case. Please TICK
only one: from 3 (Adhere), 2 (Adhere with limitations) to 1 (Not Adhere) on each of the state-
ments, which you think are nearest to your point of view. There is neither right nor wrong an-
swers.
 112

PART B. Delivery of goods

Adhere with
Statements Adhere Not adhere
limitations

B.1. The bookstore labels consigned books with

an identification tag (e.g., serial number,
codes, colored tag) when such books are
received.
B.2.
The bookstore records all delivery costs
unless it is reimbursable to the consignor.
(A debit to Receivable from Consignor and
a credit to Cash are recorded)

B.3. The bookstore records a memorandum en-

try (e.g. A receipt of 100 units of books
consigned are received on January 1, 2016)
and the title of products still remains with
the consignor.
B.4. The bookstore receives the initial list prices
together with the signed agreement after
examining appropriate terms.

B.5. The bookstore properly stocks delivered

books in a central stockroom or inside the
bookstore premises.

PART C. Risk of loss, damages and confusions

Adhere with
Statements Adhere Not adhere
limitations

C.1. The books are checked and examined for

visible signs of damages or loss and if dis-
covered concealed damages or loss, it is
reported immediately to the supplier.
C.2. The bookstore does record loss and dam-
ages unless it is the negligence of the
bookstore. (A Debit to appropriate expense
account and a Credit to cash)
 113

C.3. The bookstore insures the books against all

risks against which are customarily in-
sured, including insurance for theft and
damage, and provides evidence of such
insurance coverage to the consignor as and
when requested.
C.4. The bookstore makes sure to meet certain
standards in keeping of the books, such as
their segregation from goods wholly
owned or held under a claim of ownership
or interest.
C.5. The bookstore maintains an accurate phys-
ical inventory log records of consigned
books delivered after examining the books.

PART D. Efforts to sell

Adhere with
Statements Adhere Not adhere
limitations

D.1. The bookstore entices student demand for

the book by proper positioning and dis-
playing of books.
D.2. The bookstore records the advertising ex-
penses incurred. (A Debit to Receivable
from Consignor and a Credit to Cash)

D.3. The bookstore is requiring the purchase of

books as college academic requirements
for the students.

D.4. The bookstore agrees with the consignors

price and is justifiable enough to have a
high demand for the product for assurance
of high volume sales.

D.5. The bookstore staff has an oral tradition of

promoting the books and courtesy to the
students.
 114

PART E. Sales, Payment and Commissions

Adhere with
Statements Adhere Not adhere
limitations

E.1. The bookstore reconciles those received

from what is recorded at least daily unless
weekly is more efficient.
E.2. The bookstore remits proceeds of sale of
consigned books to the consignor or to de-
posit them in a special account on or be-
fore the period agreement.
E.3. The bookstore records sales of consigned
books as a Debit to Cash and a Credit to
Payable to the Consignor.

E.4. Notification of sale, expense and remit-

tance are recorded as Debit to Payable to
Consignor and a Credit to Commission
Income and Cash unless receivable are al-
ready deducted from those due.
E.5. The bookstore with the consignor stipu-
lates proper agreement of commission rate
putting into consideration, improvement of
Sales as determinant of commission rate.

PART F. Return of Product

Adhere with
Statements Adhere Not adhere
limitations

F.1. Defective books that are seen or returned

by the students are marked by the
bookstore as defective and returned to the
supplier immediately.

F.2. The bookstore with the consignor properly

agrees with period of return and when the
automatically unsold goods will be re-
turned.
F.3. The bookstore records a memorandum en-
try when there is a return of product. (e.g
100 units of books were returned to the
consignor due to incomplete pages on Jan-
 115

uary 15, 2016)

F.4. The bookstore segregates books returned

properly identified and counted before the
date of return. Delivery controls are taken
into consideration to eliminate possible
future return cost.
F.5. The bookstore does not follow the princi-
ple of No Return, No Exchange policy
unless stipulated in the agreement. It is the
duty and expense of the consignor.

PART G. Termination
Adhere with
Statements Adhere Not adhere
limitations

G.1. The bookstore returns all unsold copies at

the termination of consignment period in
the same quality as it was delivered.

G.2. The bookstore follows the amount of time

given by the supplier to return the books
after the termination of agreement.

G.3. The bookstore records a memorandum en-

try for return of unsold copies of books
(e.g. termination of contract with supplier
A. 120 unsold goods are returned and allo-
cated collection was remitted January 31,
2016)
G.4. The bookstore segregates books returned
properly identified and counted before the
date of return. Delivery controls are taken
into consideration to eliminate possible
future return cost. (During termination)
G.5. The bookstore terminates the contract with
justifiable and proof-based to who breach-
es the contract.
 116

PART H. Legal items

Adhere with
Statements Adhere Not adhere
limitations

H.1. The bookstore cancels the consignment by

giving notice in writing, if the consignor is
unable to deliver the consignment within a
reasonable period after giving notice under
delay of delivery. (Force Majeure)
H.2. All notices are duly signed by the
bookstore, or on behalf of the party, giving
it and are served by delivering it personal-
ly or virtually to the relevant party.
H.3. The consignment agreement properly sets
forth law and jurisdiction that are to be
construed and performed in accordance
with the Philippine Law.
H.4. The consignment agreement is put in to
writing properly signed for and on behalf
of the consignor and the consignee.
H.5. The bookstore properly records special
accounts according to classification (e.g.
special kinds of commission Del Grede)

END OF THE SURVEY THANK YOU FOR YOUR PRECIOUS TIME.

117
118
119
120
 121

RELIABILITY TESTING

RELIABILITY
/VARIABLES=B1 B2 B3 B4 B5 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5 E1 E2 E3 E4 E5 F1 F2 F3
F4 F5 G1 G2 G3 G4 G5 H1 H2 H3 H4 H5
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE SCALE CORR
/SUMMARY=TOTAL.

Reliability

Notes
Output Created 25-FEB-2016 19:32:08
Comments
Input Data C:\Users\kurtvallada\Music\Doc
uments\Selected university
bookstores Results.sav
Active Dataset DataSet1
Filter <none>
Weight <none>
Split File <none>
N of Rows in Working
20
Data File
Matrix Input
Missing Value Han- Definition of Missing User-defined missing values are
dling treated as missing.
Cases Used Statistics are based on all cases
with valid data for all variables
in the procedure.
Syntax RELIABILITY
/VARIABLES=B1 B2 B3 B4
B5 C1 C2 C3 C4 C5 D1 D2 D3
D4 D5 E1 E2 E3 E4 E5 F1 F2
F3 F4 F5 G1 G2 G3 G4 G5 H1
H2 H3 H4 H5
/SCALE('ALL VARIABLES')
ALL
/MODEL=ALPHA

/STATISTICS=DESCRIPTIVE
SCALE CORR
/SUMMARY=TOTAL.
Resources Processor Time 00:00:00.03
Elapsed Time 00:00:00.14
 122

Warnings
Each of the following component variables has zero variance and is re-
moved from the scale: H4
The determinant of the covariance matrix is zero or approximately zero.
Statistics based on its inverse matrix cannot be computed and they are dis-
played as system missing values.

Scale: ALL VARIABLES

Case Processing Summary

N %
Cases Valid 20 100.0
a
Excluded 0 .0
Total 20 100.0

a. Listwise deletion based on all varia-

bles in the procedure.

Reliability Statistics
Cronbach's
Alpha Based
Cronbach's on Standard- N of
Alpha ized Items Items
.916 .895 34

Item Statistics
Std. Devia-
Mean tion N
B1 2.90 .308 20
B2 2.50 .827 20
B3 2.90 .308 20
B4 2.25 .550 20
B5 2.30 .801 20
C1 2.20 .616 20
C2 2.50 .513 20
C3 1.65 .671 20
C4 2.25 .851 20
C5 2.65 .489 20
D1 2.00 .649 20
 123

D2 1.95 .887 20
D3 2.15 .745 20
D4 2.65 .489 20
D5 2.05 .686 20
E1 2.60 .503 20
E2 2.35 .933 20
E3 2.40 .940 20
E4 2.50 .827 20
E5 2.75 .444 20
F1 2.60 .503 20
F2 2.55 .686 20
F3 2.40 .940 20
F4 2.30 .733 20
F5 2.55 .826 20
G1 2.05 .759 20
G2 2.10 .553 20
G3 2.40 .940 20
G4 1.85 .875 20
G5 2.30 .923 20
H1 2.00 .562 20
H2 2.65 .489 20
H3 2.95 .224 20
H5 2.30 .801 20

Inter-Item Correlation Matrix

B1 B2 B3 B4 B5 C1 C2 C3
B1 1.000 -.207 -.111 .155 .128 .389 -.333 .331
B2 -.207 1.000 .620 -.058 .397 .207 .620 .427
B3 -.111 .620 1.000 .155 .555 .111 .333 .331
B4 .155 -.058 .155 1.000 .657 .000 -.093 .107
B5 .128 .397 .555 .657 1.000 .405 .128 .401
C1 .389 .207 .111 .000 .405 1.000 .000 .561
C2 -.333 .620 .333 -.093 .128 .000 1.000 .076
C3 .331 .427 .331 .107 .401 .561 .076 1.000
C4 .503 -.187 -.302 .309 .193 .503 -.543 .623
C5 .105 .325 .454 .538 .685 -.105 .105 .088
D1 .000 .392 .527 -.295 .304 .395 .158 .242
D2 -.405 .681 .366 -.189 .096 -.077 .867 -.031
D3 .069 .213 .069 .546 .538 .505 .069 .637
D4 .454 -.325 -.245 .538 .013 -.280 -.314 -.232
D5 -.473 .232 .025 -.174 .067 -.149 .523 -.532
E1 -.272 .760 .408 .000 .314 .102 .612 .031
E2 -.238 .920 .495 .128 .486 .147 .605 .206
E3 -.218 .947 .509 .102 .531 .218 .655 .317
 124

E4 -.207 .846 .620 .289 .715 .207 .620 .237

E5 -.192 -.215 -.192 .269 -.074 -.577 .115 -.486
F1 -.272 .127 .408 .381 .183 -.578 .204 -.281
F2 -.224 .695 .274 .314 .545 .100 .523 .097
F3 -.218 .947 .509 .102 .531 .218 .655 .317
F4 .140 .695 .607 .326 .825 .560 .280 .653
F5 -.186 -.347 -.186 .261 -.342 -.746 -.186 -.489
G1 -.428 .796 .473 -.284 .147 -.135 .608 -.067
G2 .062 .000 .062 .087 .048 .248 -.186 .383
G3 -.218 .947 .509 .102 .531 .218 .655 .317
G4 .332 .618 .332 .301 .668 .645 .293 .713
G5 -.259 .896 .481 .155 .441 .074 .778 .263
H1 .000 -.226 .000 .000 -.117 .304 -.365 .419
H2 -.245 .845 .454 .147 .416 .070 .734 .249
H3 -.076 -.142 -.076 -.321 -.206 .076 .229 -.123
H5 -.299 .794 .555 -.298 .098 -.021 .768 .304

Inter-Item Correlation Matrix

C4 C5 D1 D2 D3 D4 D5 E1
B1 .503 .105 .000 -.405 .069 .454 -.473 -.272
B2 -.187 .325 .392 .681 .213 -.325 .232 .760
B3 -.302 .454 .527 .366 .069 -.245 .025 .408
B4 .309 .538 -.295 -.189 .546 .538 -.174 .000
B5 .193 .685 .304 .096 .538 .013 .067 .314
C1 .503 -.105 .395 -.077 .505 -.280 -.149 .102
C2 -.543 .105 .158 .867 .069 -.314 .523 .612
C3 .623 .088 .242 -.031 .637 -.232 -.532 .031
C4 1.000 -.032 -.191 -.610 .602 .221 -.654 -.369
C5 -.032 1.000 .166 .200 .007 .341 .055 .257
D1 -.191 .166 1.000 .366 -.109 -.497 .118 .161
D2 -.610 .200 .366 1.000 -.147 -.285 .523 .543
D3 .602 .007 -.109 -.147 1.000 -.137 -.221 .169
D4 .221 .341 -.497 -.285 -.137 1.000 -.259 -.171
D5 -.654 .055 .118 .523 -.221 -.259 1.000 .519
E1 -.369 .257 .161 .543 .169 -.171 .519 1.000
E2 -.249 .398 .348 .722 .223 -.179 .382 .763
E3 -.197 .435 .345 .719 .285 -.252 .375 .802
E4 -.262 .585 .392 .681 .299 -.195 .417 .760
E5 -.383 .061 -.365 -.033 -.199 .303 .216 .000
F1 -.492 .471 .000 .189 -.253 .257 .061 .167
F2 -.158 .603 .236 .653 .242 -.024 .385 .671
F3 -.197 .435 .345 .719 .285 -.252 .375 .802
F4 .211 .455 .554 .267 .588 -.279 -.031 .486
F5 -.206 .111 -.491 -.176 -.398 .632 -.144 -.203
G1 -.591 .333 .427 .785 -.293 -.234 .500 .745
G2 .392 -.448 .000 -.311 .601 -.253 -.153 -.038
 125

G3 -.197 .435 .345 .719 .285 -.252 .375 .802

G4 .407 .363 .278 .193 .601 -.006 -.074 .455
G5 -.302 .361 .176 .726 .314 -.221 .390 .839
H1 .550 -.383 .000 -.528 .377 -.191 -.546 -.373
H2 -.284 .341 .166 .685 .296 -.319 .368 .685
H3 -.208 -.168 .000 .252 -.268 -.168 .017 -.187
H5 -.425 .148 .304 .689 -.079 -.389 .258 .575

Inter-Item Correlation Matrix

E2 E3 E4 E5 F1 F2 F3 F4
B1 -.238 -.218 -.207 -.192 -.272 -.224 -.218 .140
B2 .920 .947 .846 -.215 .127 .695 .947 .695
B3 .495 .509 .620 -.192 .408 .274 .509 .607
B4 .128 .102 .289 .269 .381 .314 .102 .326
B5 .486 .531 .715 -.074 .183 .545 .531 .825
C1 .147 .218 .207 -.577 -.578 .100 .218 .560
C2 .605 .655 .620 .115 .204 .523 .655 .280
C3 .206 .317 .237 -.486 -.281 .097 .317 .653
C4 -.249 -.197 -.262 -.383 -.492 -.158 -.197 .211
C5 .398 .435 .585 .061 .471 .603 .435 .455
D1 .348 .345 .392 -.365 .000 .236 .345 .554
D2 .722 .719 .681 -.033 .189 .653 .719 .267
D3 .223 .285 .299 -.199 -.253 .242 .285 .588
D4 -.179 -.252 -.195 .303 .257 -.024 -.252 -.279
D5 .382 .375 .417 .216 .061 .385 .375 -.031
E1 .763 .802 .760 .000 .167 .671 .802 .486
E2 1.000 .972 .920 -.032 .202 .834 .972 .685
E3 .972 1.000 .947 -.126 .134 .864 1.000 .733
E4 .920 .947 1.000 -.072 .253 .881 .947 .782
E5 -.032 -.126 -.072 1.000 .707 -.043 -.126 -.243
F1 .202 .134 .253 .707 1.000 .214 .134 .057
F2 .834 .864 .881 -.043 .214 1.000 .864 .597
F3 .972 1.000 .947 -.126 .134 .864 1.000 .733
F4 .685 .733 .782 -.243 .057 .597 .733 1.000
F5 -.263 -.366 -.347 .682 .685 -.190 -.366 -.548
G1 .791 .782 .712 .039 .331 .652 .782 .350
G2 -.071 -.081 -.115 -.322 -.417 -.291 -.081 .182
G3 .972 1.000 .947 -.126 .134 .864 1.000 .733
G4 .583 .652 .618 -.237 -.144 .495 .652 .813
G5 .910 .946 .896 .064 .272 .806 .946 .638
H1 -.401 -.398 -.453 -.211 -.186 -.546 -.398 .000
H2 .859 .892 .845 .061 .257 .760 .892 .602
H3 -.164 -.150 -.142 -.132 -.187 -.154 -.150 -.225
H5 .626 .671 .556 .074 .314 .354 .671 .377

Inter-Item Correlation Matrix

 126

F5 G1 G2 G3 G4 G5 H1 H2
B1 -.186 -.428 .062 -.218 .332 -.259 .000 -.245
B2 -.347 .796 .000 .947 .618 .896 -.226 .845
B3 -.186 .473 .062 .509 .332 .481 .000 .454
B4 .261 -.284 .087 .102 .301 .155 .000 .147
B5 -.342 .147 .048 .531 .668 .441 -.117 .416
C1 -.746 -.135 .248 .218 .645 .074 .304 .070
C2 -.186 .608 -.186 .655 .293 .778 -.365 .734
C3 -.489 -.067 .383 .317 .713 .263 .419 .249
C4 -.206 -.591 .392 -.197 .407 -.302 .550 -.284
C5 .111 .333 -.448 .435 .363 .361 -.383 .341
D1 -.491 .427 .000 .345 .278 .176 .000 .166
D2 -.176 .785 -.311 .719 .193 .726 -.528 .685
D3 -.398 -.293 .601 .285 .601 .314 .377 .296
D4 .632 -.234 -.253 -.252 -.006 -.221 -.191 -.319
D5 -.144 .500 -.153 .375 -.074 .390 -.546 .368
E1 -.203 .745 -.038 .802 .455 .839 -.373 .685
E2 -.263 .791 -.071 .972 .583 .910 -.401 .859
E3 -.366 .782 -.081 1.000 .652 .946 -.398 .892
E4 -.347 .712 -.115 .947 .618 .896 -.453 .845
E5 .682 .039 -.322 -.126 -.237 .064 -.211 .061
F1 .685 .331 -.417 .134 -.144 .272 -.186 .257
F2 -.190 .652 -.291 .864 .495 .806 -.546 .760
F3 -.366 .782 -.081 1.000 .652 .946 -.398 .892
F4 -.548 .350 .182 .733 .813 .638 .000 .602
F5 1.000 -.046 -.358 -.366 -.463 -.228 .000 -.280
G1 -.046 1.000 -.389 .782 .250 .728 -.493 .616
G2 -.358 -.389 1.000 -.081 .142 -.062 .509 -.058
G3 -.366 .782 -.081 1.000 .652 .946 -.398 .892
G4 -.463 .250 .142 .652 1.000 .580 .000 .485
G5 -.228 .728 -.062 .946 .580 1.000 -.406 .943
H1 .000 -.493 .509 -.398 .000 -.406 1.000 -.383
H2 -.280 .616 -.058 .892 .485 .943 -.383 1.000
H3 -.128 .016 -.383 -.150 -.309 -.178 .000 -.168
H5 -.103 .753 -.190 .671 .368 .726 -.117 .685

Inter-Item Correlation Matrix

H3 H5
B1 -.076 -.299
B2 -.142 .794
B3 -.076 .555
B4 -.321 -.298
B5 -.206 .098
C1 .076 -.021
C2 .229 .768
C3 -.123 .304
 127

C4 -.208 -.425
C5 -.168 .148
D1 .000 .304
D2 .252 .689
D3 -.268 -.079
D4 -.168 -.389
D5 .017 .258
E1 -.187 .575
E2 -.164 .626
E3 -.150 .671
E4 -.142 .556
E5 -.132 .074
F1 -.187 .314
F2 -.154 .354
F3 -.150 .671
F4 -.225 .377
F5 -.128 -.103
G1 .016 .753
G2 -.383 -.190
G3 -.150 .671
G4 -.309 .368
G5 -.178 .726
H1 .000 -.117
H2 -.168 .685
H3 1.000 .088
H5 .088 1.000

Item-Total Statistics
Scale Mean Scale Vari- Corrected Squared Mul- Cronbach's
if Item De- ance if Item Item-Total tiple Correla- Alpha if Item
leted Deleted Correlation tion Deleted
B1 77.60 151.516 -.150 . .918
B2 78.00 132.737 .895 . .907
B3 77.60 146.042 .583 . .914
B4 78.25 146.934 .243 . .916
B5 78.20 137.853 .637 . .911
C1 78.30 146.537 .239 . .916
C2 78.00 142.737 .610 . .913
C3 78.85 143.713 .392 . .915
C4 78.25 153.145 -.161 . .924
C5 77.85 144.555 .483 . .914
D1 78.50 145.105 .316 . .916
D2 78.55 137.524 .585 . .912
D3 78.35 143.397 .365 . .915
D4 77.85 152.766 -.209 . .920
 128

D5 78.45 146.576 .206 . .917

E1 77.90 141.463 .732 . .911
E2 78.15 130.134 .914 . .906
E3 78.10 129.253 .951 . .905
E4 78.00 131.895 .942 . .906
E5 77.75 151.461 -.108 . .919
F1 77.90 147.884 .191 . .917
F2 77.95 137.103 .803 . .909
F3 78.10 129.253 .951 . .905
F4 78.20 135.958 .818 . .909
F5 77.95 157.629 -.378 . .926
G1 78.45 138.471 .640 . .911
G2 78.40 151.095 -.068 . .919
G3 78.10 129.253 .951 . .905
G4 78.65 134.871 .730 . .909
G5 78.20 130.379 .913 . .906
H1 78.50 154.368 -.302 . .922
H2 77.85 140.450 .844 . .910
H3 77.55 151.629 -.219 . .918
H5 78.20 138.168 .619 . .911

Scale Statistics
Std. Devia- N of
Mean Variance tion Items
80.50 150.474 12.267 34
 129

Appendix C
 130

NON-PARAMETRIC KRUSKALL-WALLIS H TEST RESULTS

NEW FILE.
DATASET NAME DataSet1 WINDOW=FRONT.
NPAR TESTS
/K-W=BI B2 B3 B4 B5 B_AVE C1 C2 C3 C4 C5 C_AVE D1 D2 D3 D4 D5 D_AVE E1 E2
E3 E4 E5 E_AVE F1 F2 F3 F4 F5 F_AVE G1 G2 G3 G4 G5 G_AVE H1 H2 H3 H4 H5 H_AVE
OVE_AVE BY YOO(1 4)
/STATISTICS DESCRIPTIVES
/MISSING ANALYSIS.

NPar Tests

Notes
Output Created 25-MAR-2016 16:23:37
Comments
Input Active Dataset DataSet1
Filter <none>
Weight <none>
Split File <none>
N of Rows in Working Data
10
File
Missing Value Handling Definition of Missing User-defined missing values are treated as
missing.
Cases Used Statistics for each test are based on all cas-
es with valid data for the variable(s) used
in that test.
 131

Syntax NPAR TESTS

/K-W=BI B2 B3 B4 B5 B_AVE C1 C2
C3 C4 C5 C_AVE D1 D2 D3 D4 D5
D_AVE E1 E2 E3 E4 E5 E_AVE F1 F2 F3
F4 F5 F_AVE G1 G2 G3 G4 G5 G_AVE
H1 H2 H3 H4 H5 H_AVE OVE_AVE BY
YOO(1 4)
/STATISTICS DESCRIPTIVES
/MISSING ANALYSIS.
Resources Processor Time 00:00:00.02

Elapsed Time 00:00:00.16

Number of Cases Alloweda 16049

a. Based on availability of workspace memory.

[DataSet1]

Descriptive Statistics
N Mean Std. Deviation Minimum Maximum

BI 10 2.8000 .42164 2.00 3.00

B2 10 2.9000 .31623 2.00 3.00
B3 10 3.0000 .00000 3.00 3.00
B4 10 2.7000 .48305 2.00 3.00
B5 10 2.8000 .42164 2.00 3.00
B_AVE 10 2.8400 .20656 2.40 3.00
C1 10 2.7000 .67495 1.00 3.00
C2 10 2.9000 .31623 2.00 3.00
C3 10 2.1000 .87560 1.00 3.00
C4 10 2.5000 .84984 1.00 3.00
C5 10 2.9000 .31623 2.00 3.00
C_AVE 10 2.6200 .42635 1.80 3.00
D1 10 2.5000 .52705 2.00 3.00
D2 10 1.9000 .73786 1.00 3.00
D3 10 2.3000 .82327 1.00 3.00
D4 10 2.8000 .42164 2.00 3.00
D5 10 2.6000 .51640 2.00 3.00
 132

D_AVE 10 2.4200 .25734 2.00 2.80

E1 10 3.0000 .00000 3.00 3.00
E2 10 2.8000 .42164 2.00 3.00
E3 10 3.0000 .00000 3.00 3.00
E4 10 3.0000 .00000 3.00 3.00
E5 10 2.9000 .31623 2.00 3.00
E_AVE 10 2.9400 .13499 2.60 3.00
F1 10 2.8000 .42164 2.00 3.00
F2 10 3.0000 .00000 3.00 3.00
F3 10 3.0000 .00000 3.00 3.00
F4 10 2.7000 .48305 2.00 3.00
F5 10 1.6000 .96609 1.00 3.00
F_AVE 10 2.6200 .22010 2.20 3.00
G1 10 2.8000 .42164 2.00 3.00
G2 10 2.5000 .52705 2.00 3.00
G3 10 2.9000 .31623 2.00 3.00
G4 10 2.6000 .84327 1.00 3.00
G5 10 2.9000 .31623 2.00 3.00
G_AVE 10 2.7400 .26750 2.40 3.00
H1 10 2.0000 .81650 1.00 3.00
H2 10 2.9000 .31623 2.00 3.00
H3 10 2.9000 .31623 2.00 3.00
H4 10 2.8000 .42164 2.00 3.00
H5 10 2.4000 .51640 2.00 3.00
H_AVE 10 2.6000 .32660 1.80 3.00
OVE_AVE 10 2.6829 .14659 2.51 2.89
YOO 10 2.30 .949 1 4

Kruskal-Wallis Test

Ranks
YOO N Mean Rank

BI 1-5 years 2 4.00

6-10 years 4 5.25

11-15 years 3 6.50

 133

16 years and above 1 6.50

Total 10
B2 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
B3 1-5 years 2 5.50
6-10 years 4 5.50
11-15 years 3 5.50
16 years and above 1 5.50
Total 10
B4 1-5 years 2 2.00
6-10 years 4 5.75
11-15 years 3 7.00
16 years and above 1 7.00
Total 10
B5 1-5 years 2 1.50
6-10 years 4 6.50
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
B_AVE 1-5 years 2 1.50
6-10 years 4 5.00
11-15 years 3 8.00
16 years and above 1 8.00
Total 10
C1 1-5 years 2 1.50
6-10 years 4 6.50
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
C2 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
 134

C3 1-5 years 2 2.00

6-10 years 4 6.75
11-15 years 3 7.33
16 years and above 1 2.00
Total 10
C4 1-5 years 2 1.50
6-10 years 4 6.00
11-15 years 3 7.00
16 years and above 1 7.00
Total 10
C5 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
C_AVE 1-5 years 2 1.50
6-10 years 4 6.00
11-15 years 3 8.00
16 years and above 1 4.00
Total 10
D1 1-5 years 2 3.00
6-10 years 4 5.50
11-15 years 3 6.33
16 years and above 1 8.00
Total 10
D2 1-5 years 2 9.50
6-10 years 4 4.00
11-15 years 3 6.00
16 years and above 1 2.00
Total 10
D3 1-5 years 2 2.75
6-10 years 4 6.00
11-15 years 3 8.00
16 years and above 1 1.50
Total 10
D4 1-5 years 2 4.00
6-10 years 4 5.25
11-15 years 3 6.50
 135

16 years and above 1 6.50

Total 10
D5 1-5 years 2 7.50
6-10 years 4 3.75
11-15 years 3 5.83
16 years and above 1 7.50
Total 10
D_AVE 1-5 years 2 5.50
6-10 years 4 4.25
11-15 years 3 8.17
16 years and above 1 2.50
Total 10
E1 1-5 years 2 5.50
6-10 years 4 5.50
11-15 years 3 5.50
16 years and above 1 5.50
Total 10
E2 1-5 years 2 6.50
6-10 years 4 4.00
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
E3 1-5 years 2 5.50
6-10 years 4 5.50
11-15 years 3 5.50
16 years and above 1 5.50
Total 10
E4 1-5 years 2 5.50
6-10 years 4 5.50
11-15 years 3 5.50
16 years and above 1 5.50
Total 10
E5 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
E_AVE 1-5 years 2 6.50
 136

6-10 years 4 4.00

11-15 years 3 6.50
16 years and above 1 6.50
Total 10
F1 1-5 years 2 6.50
6-10 years 4 4.00
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
F2 1-5 years 2 6.50
6-10 years 4 4.00
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
F3 1-5 years 2 5.50
6-10 years 4 5.50
11-15 years 3 5.50
16 years and above 1 5.50
Total 10
F4 1-5 years 2 2.00
6-10 years 4 5.75
11-15 years 3 7.00
16 years and above 1 7.00
Total 10
F5 1-5 years 2 9.00
6-10 years 4 4.00
11-15 years 3 5.67
16 years and above 1 4.00
Total 10
F_AVE 1-5 years 2 8.50
6-10 years 4 3.25
11-15 years 3 6.67
16 years and above 1 5.00
Total 10
G1 1-5 years 2 6.50
6-10 years 4 5.25
11-15 years 3 4.83
16 years and above 1 6.50
 137

Total 10
G2 1-5 years 2 3.00
6-10 years 4 5.50
11-15 years 3 6.33
16 years and above 1 8.00
Total 10
G3 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
G4 1-5 years 2 1.50
6-10 years 4 6.50
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
G5 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
G_AVE 1-5 years 2 2.00
6-10 years 4 5.38
11-15 years 3 7.00
16 years and above 1 8.50
Total 10
H1 1-5 years 2 3.75
6-10 years 4 5.50
11-15 years 3 7.83
16 years and above 1 2.00
Total 10
H2 1-5 years 2 6.00
6-10 years 4 4.75
11-15 years 3 6.00
16 years and above 1 6.00
Total 10
H3 1-5 years 2 6.00
6-10 years 4 4.75
 138

11-15 years 3 6.00

16 years and above 1 6.00
Total 10
H4 1-5 years 2 6.50
6-10 years 4 4.00
11-15 years 3 6.50
16 years and above 1 6.50
Total 10
H5 1-5 years 2 8.50
6-10 years 4 3.50
11-15 years 3 5.17
16 years and above 1 8.50
Total 10
H_AVE 1-5 years 2 6.25
6-10 years 4 3.88
11-15 years 3 7.50
16 years and above 1 4.50
Total 10
OVE_AVE 1-5 years 2 2.25

6-10 years 4 4.38

11-15 years 3 9.00

16 years and above 1 6.00

Total 10

Test Statisticsa,b
BI B2 B3 B4 B5 B_AVE C1

Chi-Square 1.969 1.500 .000 5.786 9.000 7.404 8.889

df 3 3 3 3 3 3 3
Asymp. Sig. .579 .682 1.000 .123 .029 .060 .031

Test Statisticsa,b
C2 C3 C4 C5 C_AVE D1 D2

Chi-Square 1.500 6.500 7.000 1.500 6.191 3.000 6.943

df 3 3 3 3 3 3 3
Asymp. Sig. .682 .090 .072 .682 .103 .392 .074

Test Statisticsa,b
 139

D3 D4 D5 D_AVE E1 E2 E3

Chi-Square 6.541 1.969 3.687 4.304 .000 3.375 .000

df 3 3 3 3 3 3 3
Asymp. Sig. .088 .579 .297 .230 1.000 .337 1.000

Test Statisticsa,b
E4 E5 E_AVE F1 F2 F3 F4

Chi-Square .000 1.500 3.333 3.375 .000 .000 5.786

df 3 3 3 3 3 3 3
Asymp. Sig. 1.000 .682 .343 .337 1.000 1.000 .123

Test Statisticsa,b
F5 F_AVE G1 G2 G3 G4 G5

Chi-Square 6.143 5.323 1.031 3.000 1.500 9.000 1.500

df 3 3 3 3 3 3 3
Asymp. Sig. .105 .150 .794 .392 .682 .029 .682

Test Statisticsa,b
G_AVE H1 H2 H3 H4 H5 H_AVE

Chi-Square 4.837 4.250 1.500 1.500 3.375 6.500 2.943

df 3 3 3 3 3 3 3
Asymp. Sig. .184 .236 .682 .682 .337 .090 .401

Test Statisticsa,b
OVE_AVE

Chi-Square 6.935
df 3
Asymp. Sig. .074

a. Kruskal Wallis Test

b. Grouping Variable: YOO
 140

Appendix D
 141

LETTER OF PERMISSION TO CONDUCT A STUDY

February 23, 2016

Name of the Representative

Position
Name of the University
Address of the University

RE: Permission to Conduct Research Study

Dear Mr/Ms/Mrs/Prof/Dr. X:

In behalf of my group mates, I am writing to request permission to conduct a research study at

your institution. We are currently enrolled in the Bachelor of Science in Accountancy at Manila
Tytana Colleges, Pasay City, and am in the process of writing our undergraduate thesis. The
study is entitled The Level of Adherence of Selected University Bookstores in National Capital
Region to the Prescribed Consignment Practices: A Comparative Study.

We hope that the school administration will allow me to do a survey at the institutions bookstore
and Finance department to anonymously complete a 6-page questionnaire (copy enclosed). Due
to the nature of the study, we might observe existing accounting procedure and internal control
procedures, and expect transparency.

Simultaneous to observation, the questionnaires will be accomplished by the respondents which

are four qualified staff of either the bookstore or Finance department with both knowledge on the
existing consignment accounting procedure and internal control practices of the institution.

The survey results will be pooled for the thesis project and individual results of this study will
remain absolutely confidential and anonymous. Should this study be published, only pooled re-
sults will be documented. No costs will be incurred by either your institution or the individual
participants.

Your approval to conduct this study will be greatly appreciated. We will follow up via telephone
call and would be happy to answer any questions or concerns that you may have at that time.
You may contact us at our email address: kurtvallada@yahoo.com.

If you agree, kindly sign below and return the signed form in the enclosed self-addressed enve-
lope. Alternatively, kindly submit a signed letter of permission on your institutions letterhead
acknowledging your consent and permission for us to conduct this study at your institution.
 142

Sincerely yours,

Begas, Dan Paul C.

Member

Corona, Renz Mico F.

Member

Cruz, Christine Angela B.

Member

Maca-alin. Allaniah H.
Member

Red Christian L. Palustre

Group Leader

Noted by:

Dr. Maria Veronica M. Binuya

Dean, College of Accountancy and Management

RLP: cbc
Enclosures: Prescribed Consignment Practices Questionnaire
 143

Appendix E
144
 145

Appendix F
 146

GANTT CHART

Research Title : The Level of Adherence of Selected University Bookstores in National

Capital Region on the Prescribed Consignment Practices: A Comparative

Study

Researchers : Begas, Dan Paul C.

Corona, Renz Mico F.

Cruz, Christine Angela B.

Maca-alin, Allaniah H.

Palustre, Red Christian L.

Period Covered : October 2015 February 2016

October November December January February

ACTIVITIES 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
I. Research of related litera-
tures and studies
II. Choosing a topic
III. Title proposal
IV. Writing of draft of chap-
ters, 1, 2 and 3
V. Proposal defense
VI. Change of Study
VII. Second Proposal Defense
VIII. Referendum
IX. Validator issues/signs a
certificate of valida-
tion
X. Reliability testing
XI. Data collection period
XII. Data analysis period
XIII. Writing of draft of final
research paper
XIV. Submission of final pa-
per
 147

LINE ITEM BUDGET

Research Title : The Level of Adherence of Selected University Bookstores in National

Capital Region on the Prescribed Consignment Practices: A Comparative

Study

Researchers : Begas, Dan Paul C.

Corona, Renz Mico F.

Cruz, Christine Angela B.

Maca-alin, Allaniah H.

Palustre, Red Christian L.

Period Covered : October 2015 February 2016

Items Amount
Transportation Expenses Php 1500
Communication Expenses Php 200
(Cellphone Load, Internet prepaid etc.)
Supplies and Materials Expenses
a. Bond Papers Php 2500
b. Printer inks Php 400
c. Token for respondents Php 1000
Professional Expenses
a. Token for validators Free
b. Token for panel members Php 1500
Snacks Php 750
Total Php 7850
 148

Appendix G
 149

One of the university bookstore sampled

Personnel of one of the university bookstore sampled.

 150

Appendix H
 151

CURRICULUM VITAE

Dan Paul C. Begas

PERSONAL BACKGROUND

Address : 157 P-11 Brgy. South Daanghari, Bagong Tanyag, Taguig

City
Age : 19 y/o
Date of Birth : September 6, 1996
Place of Birth : Las Pias City
Civil Status : Single
Citizenship : Filipino
Religion : Roman Catholic
E-mail Address : begasdanpaul@gmail.com
Contact No. : 09066723870

EDUCATIONAL BACKGROUND YEAR GRADUATED

TERTIARY

Manila Tytana Colleges 2013-present

Pres. Diosdado Macapagal Rd., Roxas Blvd., Pasay City

SECONDARY

Olivarez College 2013

Paranaque City

PRIMARY

San Antonio Elementary School-Silverio Annex 2009

Paranaque City
 152

AWARDS AND HONORS DATE RECEIVED

Deans Lister, 1st sem (SY 2013-14) 2014

Manila Tytana Colleges

Salutatorian 2013
Olivarez College

Leadership Awardee 2013

Olivarez College

AFFILIATIONS

National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)

Junior Philippine Institute of Accountants Manila Tytana Colleges

Active Member (2013-present)

Scholars Guild Manila Tytana Colleges

Active Member (2013-present)

The Centerpost Manila Tytana Colleges

Contributing Writer

INTERESTS

Reading novels and fictional books

Reading motivational hand books and quotes

Watching movies and series

Listening to popular music

Playing different sports

 153

CURRICULUM VITAE

Corona, Renz Mico F.

PERSONAL BACKGROUND

Address :Gov. Pugeda St., Rosario, Cavite

Email :coronamico@gmail.com
Mobile no. :09261344384
Date of Birth :October 15, 1996
Place of Birth : Rosario, Cavite
Citizenship : Filipino
Sex : Male
Civil Status : Single
Languages Spoken : English and Filipino

EDUCATIONAL BACKGROUND YEAR GRADUATED

TERTIARY
Manila Tytana Colleges 2013-present

SECONDARY
Hermano Miguel Integrated School 2013

PRIMARY
Cognoscere Academy 2009

AWARDS AND HONORS DATE RECEIVED

Deans Lister Awardee February 19, 2016

Manila Tytana Colleges
 154

Salutatorian 2013
Hermano Miguel Integrated School

AFFILIATIONS

National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)

Junior Philippine Institute of Accountants Manila Tytana Colleges

Active Member (2013-present)

Scholars Guild
Active Member (2013-present)

INTERESTS

Watching movies

Reading inspirational novels

Listening to different genres of music

 155

CURRICULUM VITAE

Christine Angela B. Cruz

PERSONAL BACKGROUND

Address : 2759 Sandejas St. Tambo, Paraaque City

Age : 19 y/o
Date of Birth : November 20, 1996
Place of Birth : Manila
Civil Status : Single
Citizenship : Filipino
Religion : Roman Catholic

EDUCATIONAL BACKGROUND YEAR GRADUATED

TERTIARY

Manila Tytana Colleges 2013-present

Pres. Diosdado Macapagal Rd., Roxas Blvd., Pasay City

SECONDARY

Brainshire Science School 2013

900 J. Gabriel Street, Baclaran, Paranaque

PRIMARY

St. Andrews School 2009

475 Quirino Ave, Paraaque, 1700 Metro Manila
 156

AWARDS AND HONORS DATE RECEIVED

Deans Lister Awardee February 19, 2016

Manila Tytana Colleges

Salutatorian 2013
Brainshire Science School

AFFILIATIONS

National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)

Junior Philippine Institute of Accountants Manila Tytana Colleges

Active Member (2013-present)

Scholars Guild
Active Member (2013-present)

INTERESTS

Watching American and Korean series and movies

Reading inspirational novels

Listening to different genres of music

 157

CURRICULUM VITAE

Maca-alin, Allaniah H.

PERSONAL BACKGROUND

Address : Blk. 177 Lot 10 IRM Rd., Maharlika Vill., Tauig City
Age : 19 y/o
Date of Birth : March 28, 1997
Place of Birth : Quiapo, Manila
Civil Status : Single
Citizenship : Filipino
Religion : Islam

EDUCATIONAL BACKGROUND YEAR GRADUATED

TERTIARY

Manila Tytana Colleges 2013-present

Pres. Diosdado Macapagal Rd., Roxas Blvd., Pasay City

SECONDARY

Paulo Scholastic Chastity de Montessori Academy 2013

Betterlivig, Paraaque City

PRIMARY

North-South Islamic Academy 2009

Maharlika Vill. FTI, Taguig City
 158

AWARDS AND HONORS DATE RECEIVED

4th Honorable Mention March 2013

Paulo Scholastic Chastity de Montessori Academy

Best Platoon Leader in CAT March 2013

Paulo Scholastic Chastity de Montessori Academy

Salutatorian 2009
North-South Islamic Academy

AFFILIATIONS

National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)

Junior Philippine Institute of Accountants Manila Tytana Colleges

Active Member (2013-present)

INTERESTS

Engaging in different kinds of sports,

Watching anime, K-dramas, movies, and American series

Reading fiction, romance books, and manga,

And listening to any kind of music.

 159

CURRICULUM VITAE

Palustre, Red Christian L.

PERSONAL BACKGROUND

Address : Lot 4, Block 1-D, Phase 1, Carenville Subdivision, Magdalo,

Kawit, Cavite
Age : 19 y/o
Date of Birth : December 22, 1996
Place of Birth : Noveleta, Cavite
Civil Status : Single
Citizenship : Filipino
Religion : Roman Catholic

EDUCATIONAL BACKGROUND YEAR GRADUATED

TERTIARY

Manila Tytana Colleges 2013-present

Pres. Diosdado Macapagal Rd., Roxas Blvd., Pasay City

SECONDARY

Cavite National High School 2013

Chief E. Martin St., Caridad, Cavite City

PRIMARY

Ambrocio S. Robles Mem. Elementary School 2009

San Jose II, Noveleta, Cavite
 160

AWARDS AND HONORS DATE RECEIVED

Chairman Circle Awardee February 19, 2016& 2015

Manila Tytana Colleges

9th Honorable Mention March 2013

Cavite National High School

Salutatorian March 2009

Ambrocio S. Robles Memorial Elementary School

AFFILIATIONS

National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)

Junior Philippine Institute of Accountants Manila Tytana Colleges

Active Member (2013-present)

Scholars Guild
Active Member (2013-present)

INTERESTS

Engaging in different kinds of sports

Reading physics books and manuals

Watching play at theater

Watching movies during Saturday night