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                                     ANALYSIS OF STOCK CONTROL AND PROCEDURE

                     (A CASE STUDY OF SETRACO CONSTRUCTION COMPANY ENUGU)

ABSTRACT

          A lot of resources are invested in stock in the construction companies. Efficient financial management cannot take place in the construction companies without efficient stock management. This is the main reason why the analysis of stock control and procedures in construction companies are the main focus of this study.

          The work was divided five chapters each dealing with a particular aspect of the research work.

          Chapter one deals with introduction of the project, chapter two reviews the related literature about stock control and procedures. Chapter three dealt with research design and methodology, chapter four is all about data presentation and analysis, chapter five summarizes the findings, conclusion and recommendations. The overall aim of this research is to assess the degree of accountability being exercised and the problems being encountered in accounting for construction companies.

          The outcome of the research showed that the control and management of stock in the companies has not been as adequately as it should be, in the optimal realization of the organizational objectives. Based on the finding of this research, the researcher recommends that companies should set up a separate committee within their operation and entrust them with the functions of policy decision in stock planning and control.

          Also there should be adequate segregation of duties as to the physical counting of inventories.

          Furthermore, alternative method of acquiring stock rather than importation should be exploited by the construction companies. Also the companies should consider setting up policy guidelines for manpower development and training of their staffs. Lastly, since the world is going computerized, the construction companies should join the bandwagon and use computer in handling its stock control and procedure With these recommendations the problems of this research topic will be take care of.

TABLE OF CONTENTS

Title Page                                                                                II

Approval Page                                                                        III

Dedication                                                                               IV

Acknowledgement                                                                   V

Abstract                                                                                  VI

Table of Contents                                                                             VII

CHAPTER ONE: INTRODUCTION

1. Introduction                                                                            1
2. Purpose of the Study                                                     9
3. Statement of Problem                                                    10
4. Research Hypothesis                                                     12
5. Significance of Study                                                     13
6. Scope and Limitation of Study                                                14
7. Definition of Terms                                                       16

CHAPTER TWO: REVIEW OF RELATED LITERATURE

1. Definitions of Inventory and Stock Control                            18
2. Stores Records and Procedures                                               22
3. Indents Accounting procedure                                       28
4. Stock Verification and Inspection                                  29
5. The Benefits of Inventory and Stock Control                          30
6. Planning for Stock Requirements                                  34
7. Control of Stock Levels                                                           36
8. Stocks Records                                                              51

          CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

1. Definition of Research Design                                       55

3.1     Study Area                                                                    55

3.2     Sources of Data                                                             33

3.2.1  Primary Sources of Data                                                         56

3.2.2  Secondary Source of Data                                             56

3.3     Methods of Investigation                                                         57

3.4     Methods of Data Analysis                                             58

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

1. Presentation and Analysis of Data                                62
2. Test of Hypothesis                                                        81

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

1. Findings                                                                         85
2. Conclusions                                                                             87
3. Recommendations              &n
   
   
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