WHOLE BRAIN LEARNING SYSTEM

OUTCOME-BASED EDUCATION
TECHNICAL VOCATIONAL EDUCATION
GRADE
ENTREPRENEURSHIP 10

2
LEARNING QUARTER

MODULE WEEK 1-2

WBLS-OBE CG-Aligned Self-Learning Module TVE 10

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 MODULE
IN
ENTREPRENEURSHIP
GRADE 10

QUARTER 2
WEEK 1-2
DAY 1-10

“Performing Purchasing and Inventory of

Production Materials”

Development Team
Writer: Michelle R. Quimno
Editor: Princess Khey E. Agbayani
Reviewer: Eliza G. Salvador
Layout Artist: Jhone Terence C. Marucut
Management Team:
Vilma D. Eda Arnel S. Bandiola
Lourdes B. Arucan Juanito V. Labao
Marju R. Miguel

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 What I Need to Know

This module “Performing Purchasing and Inventory of Production

Materials” contains instructional materials and activities for you to complete.
The unit of competency, Perform Purchasing and Inventory of Production
Materials contains the knowledge, skills and attitudes required for the course
Entrepreneurship.
You are required to go through a series of learning activities in order to complete
each of the learning outcomes of the module. Follow these activities on your own and
answer the Self-Check at the end of each learning activity.

Content Standard:
The learner demonstrates understanding on purchasing and inventory of
production materials.

Performance Standard:
 The learners utilizes standard inventory control of the production
material.

Learning Objective/s:
1. Identify criteria in purchasing production materials
1.1 learn the benefits and factors in purchasing goods and services by
using the set of criteria cited in this lesson;
1.2 use a stock card for the inventory control of the
production materials; and
1.3 identify local sources necessary in the purchase of production of
materials.

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 What I Know

PRETEST:
I. MULTIPLE CHOICE: Read the statements carefully and choose the correct answer
from the given choices in each item. Write the letter of your choice on a separate
answer sheet.

1. Apple, cucumber, carrots, tomatoes and corn are examples of what

products?

A. grown products
B. manufactured products
C. processed products
D. canned products

2. The dresses we have, bags we use and shoes we wear, are examples of what
products?
A. grown products
B. manufactured products
C. processed products
D. agricultural products

3. The maximized use of the natural resources, nurturing entrepreneurial skills of

the Filipino people and additional income of the government through tax
collection are examples of what purchasing activity?
A. benefits of purchasing activity
B. factors in purchasing goods and services
C. guidelines in purchasing process
D. sustainability of the items

4. Assessing the profile of the producers and customers and checking the track
record of the suppliers are examples of what purchasing activity?
A. benefits of purchasing activity
B. sustainability of the items
C. factors in purchasing goods and services
D. guidelines in purchasing process

5. What do you call an itemized catalog or list of tangible goods or property, or

the intangible attributes or qualities?
A. inventory C. sourcing
B. stockpile D. raw materials

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 6. Maria de Leon is fond of purchasing materials from other country because
she do not believe on the quality of the materials from his own locality. What
negative value does he possess?
A. maniana habit
B. ningas cogon
C. crab mentality
D. colonial mentality

7. When you need to purchase or avail of goods and services without the
need to leave the country, how do you classify these resources?

A. export resources
B. imported resources
C. local resources
D. smuggled resources

8. Which of the following is NOT a factor to consider in purchasing production

materials?
A. know your customers
B. find out the right place to buy
C. maximize the use of our natural resources
D. get the behaviour of the patrons towards the products and services

9. Which of the following is a benefit of purchasing production materials from our

own locality?
A. it gives expensive prices for seasonal and quality products
B. it fosters the value of colonial mentality among young children
C. it forbids additional income tax collection by the government
D. it maximizes the use of our natural resources from raw materials to
the finished products

10. They are comparatively large stock of essential goods or materials, built up to
withstand long holdups or scarcity due to natural calamities, strikes, or war.
A. inventory C. stockcard
B. resources D. stockpile

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 Lesson
Performing Purchasing and Inventory
1-2 of Production Materials

What’s In

WORDS TO STUDY

Sourcing is a complete process of obtaining goods and services from

preparation and processing of a requisition to receipt and
approval of the invoice for payment.
Services are intangible products that are not goods (tangible products),
such as accounting, banking, cleaning, consultancy, education,
insurance, know how, medical treatment, transportation.
Stockpile is a comparatively large stock of essential goods or materials,
built up to withstand long holdups or scarcity due to natural
calamities, strikes, or war.
Inventory is an itemized catalog or list of tangible goods or property, or
the intangible attributes or qualities.
Product an article or substance that is manufactured or refined for sale

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 What’s
New

Directions: Search the words that are related to purchasing goods and services,
there are 10 of them. They can be arranged diagonal, vertical and horizontal. Write
them in a separate sheet. Do it as fast as you can.

S F R R B S H A I S I Q
T G E E A H E L N O N U
O H S S F H B L M E V A
C I O O G D A D A D E L
K K U R O H E A T S N I
S E R V I C E S T E T T
E L C E H J T C O C O Y
D B E S I K U A L I R B
R N S D K D G R T R Y L
S A O A O F I E A P E L
E N O R L K V A L U E S
C T P I N C O M E A D A

What is It

PURCHASING OF GOODS AND SERVICES FROM

THE LOCAL SOURCES

We are very lucky nowadays enjoying and benefiting from the advantages that
technology brings to our life. When we go to the supermarkets and department stores,
lots of goods and services are there available for your needs. With various shopping
malls we have in the entire Philippines, you will not think of going abroad to purchase
the things that you want.

As an entrepreneur, you must realize that there are things that are grown like
the fruits, plants, vegetables and other natural resources. Other things made and
manufactured according to the needs and wants of our target market or customers.
Likewise, the services are also made and created according to the felt need of the

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community. Service is more delicate to manage because it is a work that someone
has to provide to others with satisfaction.
Why do you prefer to purchase from local sources? Purchasing local goods
and services is patronizing our own products resulting to some of the following
benefits:

 it stops the value of colonial mentality not only among young children;
 it gives additional income to the government through tax collection;
 it maximizes the use of our natural resources from raw materials to the
finished products;
 it develops the skills of the Filipino people making them more innovative,
creative and productive; and
 it gives affordable price for seasonal and quality products, fruits and
vegetables.

Factors do you consider when purchasing goods and services from the local
sources? Whether you sell PRODUCTS or sell SERVICES as part of your business,
skillful, careful and wise purchasing is an important part of your business. It can
determine whether or not you will make a profit. Here are some important points
to consider when purchasing goods and services:

 study the profile of the local producers

 research on the daily average consumption of the customers
 know your customers
 find out the right place to buy
 determine how much to procure
 check the track record of each supplier
 get the behavior of the patrons towards the products and services
 ensure the sustainability of the items

LET US REMEMBER
In the purchasing activity of the business, the supply of goods and services are
vital factors to consider. Supply is the amount of something the customers can avail
from the producers who make or grow goods and services.

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 What’s More
ACTIVITY:

Directions: Write capital letter “B” for benefits and “F” for factors in
purchasing activity. Copy and answer this evaluation activity on your answer sheets.

CRITERIA IN PURCHASING MATERIALS RESPONSE

1. Knowing the customers you are prospecting

2. Having more tax collections
3. Checking the profile of the suppliers
4. Becoming more productive and creative
5. Maximizing the use of the resources
6. Ensuring the sustainability of the items
7. Stops colonial mentality

8. Helps to determine how much to procure

9. Affordable price for seasonal and quality
products, fruits and vegetables.
10. Developing the skills of the Filipino as being
innovative and productive

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 What I Have Learned

As a young entrepreneur, how can you show the responsible ways of

purchasing activities on any of the possible situations you may consider? Write your
answers on your paper.

1.
____________________________________________________________
___________________________________________________________

2.
_____________________________________________________________
___________________________________________________________

3.
_____________________________________________________________
___________________________________________________________

4.
_____________________________________________________________
___________________________________________________________
5.
_____________________________________________________________
___________________________________________________________

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 What I Can Do
Directions: Find out the available goods and services in your community and
compare them with other communities using the Venn diagram in any of the following
categories: Copy the format in your answer sheet.
1. Profile of the Producers 5. Determine How Much to Procure
2. Customer’s Average Consumption 6. Check the Track record
3. Profile of the Customers 7. Behavior of the Patrons
4. Right Place to Buy 8. Sustainability of the items

Differences Similarities Differences

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 Assessment
POST TEST

MULTIPLE CHOICE: Read the statements carefully and choose the correct answer
by writing in a sheet of paper.

1. When you need to purchase or avail of goods and services without the
need to leave the country, how do you classify these resources?

A. export resources
B. imported resources
C. local resources
D. smuggled resources
. 2. The dresses we have, bags we use and shoes we wear, are examples of what
products?
A. grown products
B. manufactured products
C. processed products
D. agricultural products
3. Assessing the profile of the producers and customers and checking the track
record of the suppliers are examples of what purchasing activity?
A. benefits of purchasing activity
B. sustainability of the items
C. factors in purchasing goods and services
D. guidelines in purchasing process

4. Which of the following is a benefit of purchasing production materials from our

own locality?
A. it gives expensive prices for seasonal and quality products
B. it fosters the value of colonial mentality among young children
C. it forbids additional income tax collection by the government
D. it maximizes the use of our natural resources from raw materials to
the finished products.

5. Apple, cucumber, carrots, tomatoes and corn are examples of what

products?

A. grown products
B. manufactured products
C. processed products
D. canned products

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 6. . Which of the following is NOT a factor to consider in purchasing
production materials?
A. know your customers
B. find out the right place to buy
C. maximize the use of our natural resources
D. get the behaviour of the patrons towards the products and services

7. Assessing the profile of the producers and customers and checking the
track record of the suppliers are examples of what purchasing activity?
A. benefits of purchasing activity
B. sustainability of the items
C. factors in purchasing goods and services
D. guidelines in purchasing process
8. What do you call an itemized catalog or list of tangible goods or property,
or the intangible attributes or qualities?
A. inventory C. sourcing
B. stockpile D. raw materials
9. Maria de Leon is fond of purchasing materials from other country because
she do not believe on the quality of the materials from his own locality. What
negative value does he possess?
A. maniana habit
B. ningas cogon
C. crab mentality
D. colonial mentality
10. They are comparatively large stock of essential goods or materials, built
up to withstand long holdups or scarcity due to natural calamities, strikes,
or war.
A. inventory C. stockcard
B. resources D. stockpile

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 13
TVE 10 Self-Learning Module CG-Aligned WBLS-OBE
What I Know What’s New Assessment
PRE-TEST (in any order) POST TEST
1. A 1. stocks 1. C
2. B 2. services 2. B
3. A 3. resources 3. C
4. C 4. products 4. D
5. A 5. sales 5. A
6. D 6. income 6. C
7. C 7. value 7. C
8. C 8. prices 8. A
9. D 9. inventory 9. D
10. D 10. quality 10. D
Answer Key
References

Adams, Bob, Small Business start – Up, Adams Media Corporation, USA 1996
Peters, Hisrich, Entrepreneurship, MgGraw Hill Book Co. Singapore 1999
Rojo, Luz V. et.al Business Management, Adriana pubishing Co. INC. Manila. 2003
CBLM, Entrepreneurship Fourth Year

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 For inquiries or feedback, please write or call:

Department of Education – Schools Division of Laoag City

Curriculum Implementation Division
Brgy. 23 San Matias, Laoag City, 2900
Contact Number: (077)-771-3678
Email Address: laoag.city@deped.gov.ph

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