AS 91386 · 3 credits · Internal
Inventory subsystem
Demonstrate understanding of an inventory subsystem for an entity
Study with Coach
Got a result for this standard?
Sign in to add your result →Save your actual school result to count your credits.
In plain EnglishAI study guide · check the NZQA standard
You need to show that you understand how a business keeps track of its inventory (stock) using a perpetual system. This means you'll process inventory records showing purchases, sales, and stock levels, using either FIFO or weighted average costing, and explain or justify how the different parts of the inventory system work together.
What to do, grades and common mistakes
What you actually do
- ·Process inventory records that track quantities and costs for stock balances, purchases, and sales using FIFO or weighted average costing methods
- ·Describe the key elements of how the inventory system works, such as how stock is ordered, checked when received, and controlled
- ·Handle additional inventory transactions like stock returns and shortages (for Merit level) or more complex situations like drawings of inventory or transposition errors (for Excellence)
- ·Work with a business registered for GST using a perpetual inventory system (either a real company or case study)
- ·Explain or justify your choices about how the inventory system operates and why certain controls or processes are important
AAchieved
You process basic inventory records showing purchases and sales with correct quantities and costs, and describe how the main parts of the inventory system work.
M