QUESTION ONE (30 MARKS)COMPULSORY a) Explain the significance of maintaining stock records in a warehouse. [6 Marks] b) Discuss the various definitions of inventories for a manufacturing concern (6 Marks)

## Step1<br />The first part of the question asks us to explain the significance of maintaining stock records in a warehouse. This involves understanding the importance of inventory management in a warehouse setting.<br /><br />## Step2<br />Maintaining stock records in a warehouse is crucial for several reasons. It helps in tracking what items are in stock, their quantities, and their location. This information is vital for efficient inventory management and helps prevent overstocking or understocking.<br /><br />## Step3<br />Stock records also help in identifying slow-moving items that may need to be cleared out to make space for more profitable items. They also help in preventing theft and loss, as discrepancies between recorded and actual stock can indicate potential issues.<br /><br />## Step4<br />The records also assist in financial reporting, as the cost of goods sold (COGS) is calculated based on the inventory records. This information is crucial for financial reporting and tax purposes.<br /><br />## Step5<br />The second part of the question asks for various definitions of inventories for a manufacturing concern. This involves understanding the different ways inventories can be defined in a manufacturing context.<br /><br />## Step6<br />In a manufacturing concern, inventories can be defined in various ways. They can be raw materials, which are the basic substances used in the production process. They can also be work-in-progress (WIP), which are partially completed goods that are still in the production process. Finally, they can be finished goods, which are the final products ready for sale.