BUSINESS, MANAGEMENT, AND ACCOUNTANCY
The study used action type of ENHANCEMENT OF PHARMACY
research in evaluating the existing
food costing system and practices in
inventory valuation of a restaurant in
Los Baños, Laguna. An open-ended
questionnaire was used to collect data
and answer the questions related to
the study. An interview with
management was also conducted.
Likewise, key personnel were
interviewed to asses if the policies and
procedures were being observed and
practiced.
Results showed that there
were a lot of weaknesses in the
current system of the restaurant. The
internal control procedures on material
requisition were lax. There were no
formal forms and reports
accomplished to record the purchases
and issuances of materials. In
addition, the procedures on purchases
of perishable and non-perishable
goods were confusing. Duties and
responsibilities were not specified and
combined to facilitate control
considering the limited human
resources. Lastly, the restaurant has
no cost accounting system to record
and monitor its food cost.
Results conformed that the
study was able to design an enhanced
inventory, payroll, and cost accounting
system. The study proposed a system
for recording purchases, material
requisitions, issuances, and payroll.
The study also suggested procedures
for accounting of raw materials used,
direct labor, employee meals,
complimentary sales, and work-in-
process. The proposed procedures
were based on the current human
resource of the restaurant.
62
INVENTORY CONTROL SYSTEM FOR
MALIJAN DIABETES CENTER (MDC)
Researchers: Precious S. Diva and
Melanie R. Trinidad
Adviser: Mr. Theodore Albert Lim
The study was conducted 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 inventory
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 through SWOT
analysis. Therefore, the study proposed
different methods from accounting and
management concepts to reduce the
RESEARCH REPORT 2009-2010
 BUSINESS, MANAGEMENT, AND ACCOUNTANCY

threats from these weaknesses. ABC

analysis was suggested as a method
of classifying the inventory of the
pharmacy. Moreover, the perpetual
inventory system was suggested to
avoid expensive periodic inventory
counts. Furthermore, the use of
different accounting forms like
Purchase Requisition, Purchase
Order, and Receiving Report as well
as close supervision were
recommended to reduce the
weaknesses found in the pharmacy’s
current inventory system.

RESEARCH REPORT 2009-2010 63