JC Chandisingh Secondary Schools.

Grade 10B

Office Administration

Example questions

Question 1 1

Assume that you are Alley Browne, a clerk in the purchasing Department. Your supervisor has
asked you to order the following stationery to replace stock to meet the new school year.
10 boxes folders 8 1/2" x 14” @ $100.00 per box
20 reams paper 8 1/2” x 11” @ $200.00 per ream
5 dozen blue pens Stabilo Excel 828F @ $12.00 per dozen
3 boxes paper clips Jumbo size @ $10.00 per box
The items will be sourced at Reliable Office Supplies Ltd, 10 King Street, Queenstown.

Question 2

Using the form provided to place an order for the following items from the price list. Request
delivery by 30 January, 2018.
2 calculators
2 filing trays
1 filing cabinet
1 staple machine

Question 3

On December 31, 2017 the Business Department of Marlie High School submitted a purchase
requisition for three standard teacher’s desks and three swivel chairs from Willis Office Supplies
Ltd. The catalogue number were D4 and SC3 respectively. The requisition was prepared by A.
Cape, authorized by B. Sect and approved by C. Prof.

Question 4

Use the information above to complete the Purchase Requisition form provided

-
 - importance of inventory management.

Prevention of pilferage

Pilferage means theft. It can be minimized by:

Recruiting people who have good references
Having a clear disciplinary policy.
Having secure storage place
Having regular stock reconciliations so pilferage is soon discovered.

Control of inventory
This means finding a balance between holding too little stock and keeping too much. If stock
runs out, production may have to stop and customers could be disappointed. If there is too much
stock, items could go out of date or take up too much storage space.
Some means of controlling inventory are:
- recording all stock entering and leaving the store to ensure that the quantity of each item
in stock is known.
- Carrying out stock reconciliations to check the accuracy of recorded stock levels.
- Setting maximum and minimum levels of stock for each item.
- Recording stock when the minimum level is reached and ensuring that the amount held
- Never exceeds the maximum level.

Signaling of market
This relates to stock levels of finished goods. If these fall quickly because demand is high,
output must be increased. If they are static, then production may be reduced or stopped for that
product.

Availability of capital
Capital is money used to buy buildings, equipment and stock. Businesses try to keep stock levels
low to avoid using up too much capital which could be used for other purposes such as
upgrading machines or computer systems.

Optimization of storage space

Sufficient storage space is needed for the maximum amount of stock required. This costs money
in terms of buildings, lighting and air conditioning so it is more economical to keep storage
space to a minimum.

Just in time (JIT)

This is a way of reducing the amount of stock held for production. Instead, trusted suppliers deliver
quickly on demand.