New Era University

College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Inventory Management of Hardware Businesses in Batasan, Quezon

City

A Research Proposal Presented to

The Faculty of the College of Accountancy

New Era University

New Era Quezon City

In Partial Fulfilment of the Requirements for the Course

Accounting Research Method

By

Belleza, Ed Mark
Cordero, Angelika May
Gaila, Jackilyn
Gregorio, Diane
Lumugdang, Chzebelle Deniel
3BSA3

July 2021
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

TABLE OF CONTENTS

PAGE

TITLE PAGE

TABLE OF CONTENTS i

Chapter
1 INTRODUCTION
Background of the Study 1
Review of Related Literature and Studies 3
Theoretical Framework 12
Conceptual Framework 14
Statement of the Problem 16
Significance of the Study 18
Scope and Limitations 17
Definition of Terms 19
2 METHODOLOGY
Research Design 20
Population and Sampling 20
Source of Data 21
Data Analysis 22

QUESTIONNAIRE 24
REFERENCES 35
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Chapter 1

INTRODUCTION

Background of the Study

The Philippine CPA Licensure Examination (CPALE) is one of the few

enduring and demanding professional examinations given under the supervision of

the Professional Regulation Commission (PRC). The percentage of takers who

successfully passed the CPA board exam based on the official releases of the PRC,

ranges from a low of 14% to a high of 42% for the May and October year 2014 to

2019.

In New Era University, the CPALE passing rate has not been consistent

through the years – with results surpassing the national passing rate down to

something falling below it. Based on the results of the May and October year 2014-

2019 CPA licensure exam, the average passing rate of the New Era University is

38.09% for the first-time takers. This invariably attests to the unusual level of

rigidity in passing the accountancy professional examinations.

With the low passing percentage trend, it is imperative to improve the

performance of accounting graduates who will take the CPA board examination in

the future. With this, it is a central idea to determine the factors that contribute to

the success of passing the said examination, in order to develop strategies,

intervention, and remediation practices to further increase the number of passers in

the future.

1
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

As pinpoint by several studies and literature, success is effectuated by

internal and external factors. Specifically, in the CPA board exam, factors such as

study habits, undergraduate studies performance, motivation, school, home, and

exam structure were discussed. The current research, on the other hand, targets to

add other factors to be studied, such as peer influence and taking multiple formal

reviews apart from the aforementioned factors: study habits, undergraduate studies

performance, school, and home, for these factors, was found out by the researchers

as the most significant elements in passing the CPA licensure examination. As a

matter of course a research-based study must be done in order to assert that the

abovementioned factors are indeed a contributor to successfully passing the said

examination, hence the current study is to be conducted.

2
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Review of Related Literature and Studies

Inventory Management

According to David Luther (2020) article, inventory management is one of the

pillars of a successful retail operation. Retail inventory management techniques help

stores and ecommerce sellers satisfy customers, reduce costs, and increase profits.

Retail inventory management is the process of ensuring you carry merchandise that

shoppers want, with neither too little nor too much on hand. By managing inventory,

retailers meet customer demand without running out of stock or carrying excess

supply. In practice, effective retail inventory management results in lower costs and a

better understanding of sales patterns. Retail inventory management tools and

methods give retailers more information with which to run their businesses,

including: product locations, quantities of each product type, which stock sells well

and which does not, by location and sales channel, profit margin by style, model,

product line or item, Ideal amount of inventory to have in back stock and storage,

how many products to reorder and how often, when to discontinue a product, how

changing seasons affect sales.

Inventory management is vital for retailers because the practice helps them

increase profits. They are more likely to have enough inventory to capture every

possible sale while avoiding overstock and minimizing expenses. From a strategic

point of view, retail inventory management increases efficiency. Decreases Inventory

Costs, when you know how much stock you have and how much you need, you can

pinpoint inventory levels more accurately, thereby reducing storage and carrying

costs for excess merchandise. Other savings include shipping, logistics, depreciation,

and the opportunity cost that comes from not having an alternative product that might

sell better. Minimizes Out-of-Stocks, to avoid disappointing customers and missing

3
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

sales, retailers want to avoid running out of inventory. Retailers can use inventory

management tools to determine how much stock is “just right” to have on hand,

neither too much nor too little. Improves Profit Margins, with lower inventory costs

and enough supply to fill every order, retailers improve profitability. Prevents

Spoilage and Obsolescence, inventory management helps retailers address another

costly inefficiency that happens when products expire or become obsolete. Reduces

Shrinkage, shrinkage is inventory loss due to shoplifting, product damage, vendor

mistakes or fraud, employee theft and administrative errors. Improves Customer

Satisfaction, when customers get the products, they want faster with fewer mistakes

or out-of-stocks, it increases customer loyalty.

Inventory represents an important decision variable at all stages of product

manufacturing, distribution, and sales, in addition to being a major portion of current

assets of many organizations. Too much and too low inventories bring down the level

of profitability of an organization. Therefore, whether it is a manufacturing or a

merchandising organization, the goal should always be the same, that is, to ensure the

inventory is ready and at the same time inventory is at a low level (Kungu, 2019).

Stock and Lambert (2011) assert that inventory serves five purposes in the

firm. Thus, inventory provides protection from uncertainties in demand and order

cycle, enables the firm to achieve economies of scale, balances supply and demand,

enables specialization in manufacturing, and acts as a buffer between critical

interfaces within the supply chain.

According to Hashmi (2016), inventory management is significant because it

still needs intentions so the conventional and simple methods of managing the

inventories are lacking in best systems, which is also lagging them in sharing of

information and management of their inventories well in downstream members.

4
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

To exercise inventory planning and control, the understanding of the factors

influencing inventory management is necessary. This will enable hardware businesses

to select an appropriate inventory management practice in their enterprise.

Through the role of inventory management practices of a firm, their inventory

cost on order quantity and hence on inventory performance is well explained in

theory; an empirical evaluation of the same is not done so far in the context of SMEs,

particularly in developing countries.

Inventory is one of the more evident and tangible components of doing

business for many business owners. In a retail store, merchandise stocks contribute to

profits only when they are sold, and money is received at the cash register. These

stocks account for a significant amount of a company's investment and must be

managed carefully in order to maximize profitability. Many small businesses, in fact,

are unable to tolerate the types of losses that result from inadequate inventory

management. Inventories are unreliable, inefficient, and costly unless they are

controlled.

The relevance of these literatures to this study is that they suggest that though

all categories of inventory are important, inventory must be categorized or classified

in accordance to their relative impact or value and treated differently.

Weakness of Manual Inventory Management

Even the smallest businesses need to implement some form of inventory

control system to keep an accurate merchandise count, as well as for accounting

purposes. Business owners generally have a choice between using a computerized or

a manual inventory system. A manual system offers a number of potential advantages

and disadvantages.

5
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

In one study its findings showed the challenges facing the manual system of

inventory management system are as follows; the manual system requires everyday

counting of items in the inventory, human errors are very prevalent during counting

and recording and in case of disaster like fire or flood or poor communication, all the

manual inventory records will be damaged and irretrievable. Based on the findings

this paper highlights the possible solutions to the above problems; a computerized

inventory management system to order and update the stocks was designed and goods

were supplied to implement the possible solutions (Abiyose, 2015).

A manual inventory system depends on many active people, which increases

the possibility of human error. The person may forget to record a transaction or only

the wrong count of items. This decision on additional orders need not increase

inventory costs of the company and use valuable storage space.

Calculation physically inaccurate can also result in not ordering really a

product, meaning business could run out a single item criticality in the wrong time.

Profitability Ratio

Profitability refers to earnings of companies that are generated from revenues

and after deducting all expenses incurred during a given period. Khaled Al-Jafari and

Samman (2015) mentioned it is considered one of the most important goals that

management of every company strives to achieve and without it companies will

cease.

Inventory turnover is generally known to be an effective indicator of

operational efficiency; however, Gaur et al. (2005) suggested the use of a new

empirical measure—adjusted inventory turnover—for performance comparison

across years or across firms, by controlling some variables affecting inventory

turnover ratios of companies. They observed that gross margin, capital intensity, and
6
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

sales surprise were the factors influencing the firms’ inventory turnover ratios in the

retail industry. In subsequent work, Gaur and Kesavan (2015) found that company

size and sales growth rate also affected inventory turnover ratios of retail companies.

In another study, Dedunu (2018) considered the relationship between a

company's performance and inventory management. The study used inventory days

as a dependent variable and gross profit and net profit as an independent variable.

According to the analysis result, the researcher identified inventory management and

gross profit had a positive relationship, net profit had a negative relationship and

inventory management significantly affected gross profit margin and net profit

margin.

Han et. al (2013) mentioned that inventory turnover is critical in the

manufacturing industry because it can tell how fast the products are moving out of the

factory. Higher inventory turnover indicates less cash being tied up in slow-moving

products that are not being sold. In addition, inventory turnover measures are

objective and publicly available from companies’ financial statements. It is also a

signal of how efficiently products are moving along the manufacturing supply chain.

Determining the speed of sales can be a useful benchmark for evaluating firms’

competitiveness. Moreover, his works also considered gross margin, capital intensity,

firm size, debt cost, and demand uncertainty as control variables for inventory supply

in the manufacturing industry.

According to James (2021) gross profit margin is a measure

of profitability that shows the percentage of revenue that exceeds the cost of goods

sold (COGS). The gross profit margin reflects how successful a company's executive

management team is in generating revenue, considering the costs involved in

7
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

producing their products and services. In short, the higher the number, the more

efficient management is in generating profit for every dollar of cost involved.

The gross profit margin is calculated by taking total revenue minus the COGS

and dividing the difference by total revenue. The gross margin result is typically

multiplied by 100 to show the figure as a percentage. The COGS is the amount it

costs a company to produce the goods or services that it sells.

If a company's gross profit margin wildly fluctuates, this may signal poor

management practices and/or inferior products. On the other hand, such fluctuations

may be justified in cases where a company makes sweeping operational changes to its

business model, in which case temporary volatility should be no cause for alarm.

According to the study of Tulsian (2016) entitled Profitability Analysis (A

comparative study of SAIL & TATA Steel). The main purpose of a business unit is to

make profit. The profitability analysis is done to throw light on the current operating

performance and efficiency of business firms. It should be duly noted that net income

figure alone is not very helpful in determining the efficiency and performance of the

business firm unless it is related to some other figures such as sales, cost of goods

sold, operating expenses, capital invested etc. Thus, the profitability ratios are

calculated to enlighten the end result and comparison of business firms which is the

sole criterion of overall efficiency of business concern.

It is evident from the gross profit ratio of Tata Steel showed a decreasing trend

and so is the case with SAIL, which shows inefficiency of the management, however

on the basis of the average it can be concluded that Tata Steel performed better as the

decrease is less than the decrease in the gross profit ratio of SAIL. Therefore, it is

suggested that management of both the companies should increase the gross profit

8
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

ratio by controlling cost of goods sold and by increasing sales and try maintaining the

same position in future also.

Inventory Method

FIFO Method

FIFO assumes that any sale of an item is from the oldest batch on hand and is

relevant when the prices you bought it at fluctuate when you have large numbers of

nearly identical items, specific identification may not be worth the effort. First In,

First Out, or FIFO, might be better.

This method will give you a very accurate representation of your inventory,

which can be beneficial if you buy batches of the same item at varying prices,” stated

(Abir, 2021). “It will often mirror reality as older units of a stock-keeping unit (that

scannable barcode) tend to be sold before the newer ones in ideal circumstances.

“The downside is that it takes more effort to track different costs within the same

stock-keeping unit for different batches of purchases. For example, if you sell a

particular shirt with one universal product code (UPC) that was bought in three

batches, it’s harder to track a different cost for each batch than one cost for the entire

UPC.

LIFO Method

LIFO, as the name suggests, is basically the opposite of FIFO. It treats the last

items bought as the first ones sold. Here is what (Abir, 2021) has to say about this

method. “LIFO is when you attribute specific costs to individual items or batches of

items based on their actual cost, and you reduce your cost as you sell items with the

last items added being removed from inventory first. This method only makes sense

when it actually mirrors reality where the newest items are sold first, and older items
9
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

can sit there for a long time.” It is not a particularly common method, he explains,

because this rarely happens in retail.

Weighted Average Method

Lastly, if the prices of the products you buy hardly change then you can use an

even easier method called Weighted Average Costing. With the weighted average

method, you use a pool of cost for all units of a particular stock keeping unit. Any

purchase is added to the pool of cost, and the pool of cost is divided by all units you

have on hand. “The benefit is that it’s much easier to track than specific costing

because you don’t need to know exactly which batch a sold unit was part of, which is

especially helpful when you have many identical units,” says (Abir, 2021). It may

also give you a more accurate costing method than the retail method—which does not

compensate for discounts or differing margins across SKUs.

Specific Identification Method

This is when you assign a specific cost to each item in your store. Abir says

this method makes the most sense for retailers that have a lot of different items,

especially if they were bought from various sources. “A good example would be an

antique dealer,” says Abir. Specific identification methods depend on the size of your

retail business, according to the Corporate Finance Institute (CFI). For the specific

identification method to suit your retail business, you need to be able to identify the

location, cost, and sale amount of every stock-keeping unit (SKU) confidently and

accurately in your inventory. The bigger your business and its inventory, the harder

that becomes. The CFI suggests specific identification is better suited to small

businesses because it can give them a more accurate profit and loss statement, with
10
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

reliable numbers on income and losses and normal spoilage of inventory (due to

things like accidental damage).

Retail Inventory Method

The retail method provides the ending inventory balance for a store by

measuring the cost of inventory relative to the price of the goods. In essence, it

determines how much expense to recognize this period versus the next period. The

retail method assumes that all your inventory has a consistent markup, explains (Abir

Syed, 2021) CPA of UpCounting. “So, you take the total value of what you have for

sale, reduce it by its markup, and use that number as your cost.” The benefit of this

method, explains Abir, is that it is extremely easy to calculate and can work when

you have weak inventory cost tracking. “The main con is that it’s generally not very

accurate, especially if you have prices that fluctuate at different times of the year

(which most retailers do), and if you have products with different markups.”

11
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Theoretical Framework

This study adopts to the EOQ Model. EOQ is the purchase order quantity for

replenishment that minimizes total inventory costs. The purchase order is triggered

when the inventory level hits the reorder point. The following illustrates the EOQ

Model.

The current study was anchored to the Attribution theory by Bernard Weiner

(1974). Attribution theory is defined as a psychological concept about how people

explain the causes of an event or behavior. Attributions are classified along a

dimension known as the locus of causality from internal and external (Marc, 2016).

If the behavior is attributed to an internal locus of causality, a person assumes that the

outcome resulted from personal factors or something within us. It is all about being

aware that you are a person who controls your motivation and outcome which in

turn, what drives success. In the context of this assessment, it may denote that

12
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

successful examinees’ performance in CPALE, may be attributed to the intrinsic

factors such as their academic performance in college and study habits, as well as the

times they underwent formal review which manifests their effort, passion, and

perseverance they have from their undergraduate studies until their review for the said

examination.

The other locus of causality from Walberg’s Attribution Theory is the external

locus. In this principle, it is assumed that a person attributes the outcomes to factors

outside of himself, or due to situational factors. In this context: peer influences, the

school, home environment, enrollment in a review center are the outer factors that the

respondents may perceive as an element of their performance in the CPALE.

Economic Order Quantity (Wilson EOQ Model)

One of the most widely used models is the EOQ model in determining the

optimal inventory level under operational management. This mathematical model was

developed by F.W Haris year 1913 but still R.H. Wilson is given credit for his early

in-depth analysis of the model. the model is also known as the Wilson EOQ model.

According to this model, some costs (ordering cost) decline with inventory holdings,

while others (holding cost) rise and that the total inventory-associated cost curve has

a minimum point. This is the point where total inventory costs are minimized. Since

inventory costs directly impacts the profitability of the company, the EOQ Model

highlights the effect of inventory management on the profitability of hardware

businesses.

13
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Conceptual Framework

< Inventory
Management Practice

 Ordering
< PROFITABILITY
 Storing
 Receiving
 Selling

 Effective
inventory
management
practices

The conceptual framework was designed to bring forth a pictorial or

diagrammatic view of the study’s dependent and independent variables. The

independent variables are variables that predict the amount of variation in the
14
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

dependent variable. Thus, the value of the dependent variable depends on any change

in the independent variable. This study’s independent variable was represented by the

inventory management practices while the dependent variable focused on operational

performance measured in terms of Profitability, Reliability, Responsiveness, Cost

Efficiency.

Fig. 2 presents the conceptual framework of the study. From Fig. 2,

operational performance is dependent on the inventory management practices of the

manufacturing firms. As such, any change, positive or negative, in inventory

management practice is likely to cause a change in firm performance in the same

vein. Therefore, this framework was very important as it clearly revealed the effect

that inventory management practices could have on the operational performances of

manufacturing firms. This will help inform policies and practices of the

manufacturing firms in a bid to improve their operational and overall performance

levels.

15
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Statement of the Problem

This study attempts to determine the effect of inventory management on the

profitability of hardware businesses in Batasan, Quezon City. Specifically, the study

endeavored to answer the following:

1. How does hardware businesses practice Inventory Management in Batasan,

Quezon City in terms of:

1.1. Ordering

1.2. Receiving

1.3. Storing

1.4. Sales

2. How may the profitability of the hardware businesses be measured in terms of:

2.1. Gross Profit Margin

16
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Scope and Limitations

This study will investigate the inventory management of the hardware

businesses. This was done to have an understanding about the hardware businesses

perspective and the inventory management practiced.

The respondents of the study were composed of all hardware businesses

within the area of Batasan Hills, Quezon City. A short questionnaire that consists of

closed-ended questions will be used on which the researchers will personally

distribute. The respondents that will partake in the survey will only be

owner/managers as these are the key decisionmakers with an in-depth knowledge on

the inventory-management practices employed by their businesses and should be able

to supply reliable information needed by the researcher. Another limitation in this

study is to consider that financial statements are reliable.

17
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Significance of the Study

a. Management of Hardware Entities – This study will serve as a tool for

evaluation of the inventory management they use. This will enable them to stress out

the effectiveness of their current inventory method. The findings will make them

aware of whatever problem, possible solutions and recommendations to further

enhance the factors that contribute to achieving the proper management of inventories

for their merchandise.

b. Other Hardware Entities – For the hardware entities/owners who would like

to check on some of inadequacy regarding the management of inventories, then it

could better be addressed through this research.

c. Future Investors – This study will provide relevant information to the future

managers/owners who would like to indulge with hardware merchandising business to

better facilitate the management of inventories that will help the hardware owners

successfully manage their own hardware merchandising entity if proven to be

working efficiently with the chosen hardware merchandising entities.

d. Government – This study is beneficial to the government as the valuation of

tax obligations in all businesses must account for the value of their trading stock at the

end of each income year (closing stock) and at the start of the next income year

(opening stock). Plus, the corporate tax of any business is directly related to inventory

18
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

management. The First In, First Out (FIFO) method increases corporate tax liability.

In contrast, the Last In, First Out (LIFO) method decreases corporate tax liability.

e. Academe – This study contributes faculty members handling accounting and

other business subjects to be able to deliver to their students the most recent inventory

management practices used in hardware merchandising entities.

f. Future Researchers – This study will be an effective tool and reference for

the future researchers who would intend to make further relevant study particularly on

the inventory methods of hardware merchandise entities.

Definition of terms

Cost efficient. The act of saving money without wasting time and money. It is

measured by comparing the costs of business against the revenue generated.

Effective. It is the ability to achieve a desired goal.

Inventory. Products which are available for sale. It is an asset that is intended to be

sold in the ordinary course of business.

Inventory costs. It is the total costs associated with ordering and holding of

inventory.

Inventory management. It is the tracking and controlling of inventory. It governs

the entire flow of goods from purchasing right through to sale, ensuring that you

always have the right quantities of the right item in the right location at the right time.

Ordering. It is the activity of requesting for products from a business.

Profitability. It is a company’s capability of generating profits from its operations.

Receiving. The act of handling products into a warehouse.

Reliability. The quality of being able to be trusted because of working or performing

well.
19
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Responsiveness. The ability to respond purposefully and within an appropriate

timeframe to customer requests.

Selling. A transaction where a product is being exchanged for money.

Storing. To take in or hold supplies or goods as for the retail sale.

Warehouse. A place that is used to store commercial merchandise or products.

Chapter 2

METHOD

Research Design

The study adopted descriptive research design. This design utilized

quantitative and data, which enabled the researcher to have an in-depth examination

of the proposed study. It was also intended to provide answers to the research

question. The design was chosen since it was deemed to be the most effective to

significantly contribute of to the depth and specificity of the study. Given that the aim

of the proposed study is to focus on the performance of an organization with regards

to their inventory management system and to critically assess inventory control

procedures of those hardware based on their inventory classification, storage method

and material inspections that results in inventory lost.

Population and Sampling

The researchers have chosen all hardware businesses located in Batasan,

Quezon City to be their respondents. The total amount of the population will be

gathered from the records of the Municipality of Quezon City.

20
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Source of Data

The researchers will prepare a letter of request signed by their thesis adviser

and Dean of College of Accountancy to be submitted first to the municipal of Quezon

City to obtain the total number of hardware stores located at batasan, Quezon city.

After that, the researchers will be able to gather information from the management of

hardware stores in which copies of the questionnaires will be personally

disseminated.

The result of the data gathering will be tallied and tabulated according to the

frequency of items checked by the researchers. The results will be interpreted by the

statistician using statistical tools. The result will help the researchers to arrive at the

interpretation of the study.

21
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Data Analysis

With the data collected being numerical scores, which can be analyzed,

interpreted and summarized using standard statistical procedures; descriptive

statistics were employed to organize, analyze, interpret, and summarize the data

collected. To carry this task out, the Statistical Package for Social Sciences (SPSS)

version 22.0 was employed. This software is useful in the handling of complex data

manipulations and analyses. It is fairly fast and easy to use. It allows the use of

percentages, graphs, charts, means and a score of other useful interpretations from a

simple pull-down menu. It was then decided that it would be the best to use in this

survey.

1. Spearman rank-order

The Spearman rank-order correlation coefficient (Spearman’s correlation, for

short) is a nonparametric measure of the strength and direction of association that

exists between two variables measured on at least an ordinal scale will be used in this

study. It is denoted by the symbol rs (or the Greek letter ρ, pronounced rho). The test

is used for either ordinal variables or for continuous data that has failed the

assumptions necessary for conducting the Pearson's product-moment correlation

22
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

2. Cross Tabulation

Cross tabulation is a method to quantitatively analyze the relationship between

multiple variables. Also known as contingency tables or cross tabs, cross tabulation

groups variables to understand the correlation between different variables. It also

shows how correlations change from one variable grouping to another.

Cross tabulations are used to examine relationships within data that may not

be readily apparent. Cross tabulation is especially useful for studying market research

or survey responses. Cross tabulation of categorical data can be done with through

tools such as SPSS, SAS, and Microsoft Excel.

3. Multiple Linear Regression (MLR)

Multiple linear regression (MLR), also known simply as multiple regression,

is a statistical technique that uses several explanatory variables to predict the outcome

of a response variable. The goal of multiple linear regression (MLR) is to model the

linear relationship between the explanatory (independent) variables and response

(dependent) variable.

23
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

QUESTIONNAIRE

We, the researchers from New Era University, as part of our studies, are

carrying out research on the Inventory Management of Hardware Businesses in

Batasan, Quezon City. Your participation in answering candidly the following

questions would be a great contribution to this paper. Please be assured that the

responses you give are for academic purposes only.

By beginning the survey, you acknowledge that you have read this information

and agree to participate in this research, with the knowledge that you are free to

withdraw your participation at any time without penalty. Your participation is

appreciated. Thank you for taking time to assist us in our educational endeavors.

A. Respondent and Business Profile

Name (optional): __________________________________________

Age: ____________________________________________________

1. How long has been your business in operation?

 Less than 1 year

 1-5 years
24
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

 6-10 years

 Above 10 years

2. How many employees does your company have?

 1-20

 21-50

 51-100

 More than 100

Please use the following scale to answer Question 5.

Instructions: For each statement, please check whether you Strongly Agree, Agree,

Neutral, Disagree or Strongly Disagree

3. To what extent do you agree with the following statements about how your business

orders inventory (stock)?

B. Inventory Management Strongly Agree Neutral Disagree Strongly

Practices Agree Disagree

Ordering
i. We rely on common

sense to determine the

quantity of inventory

(stock) to order
ii. We use an equation to

calculate the quantity of

inventory (stock) to order

iii. We order a fixed quantity

of inventory (stock)

periodically

25
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

iv. We order inventory

(stock) in bulk to take

advantage of the trade

discounts
v. We order inventory

(stock) when we receive

an inquiry from our

customer
vi. We receive our inventory

(stock) automatically

from our suppliers

without even placing an

order
vii. We order only when we

run out of stock

viii. When our inventory

(stock) reaches a certain

level, we automatically

place an order
ix. When we place an order,

we receive our inventory

(stock) without delay

Storing

4. Does your business use a warehouse for storage of inventory (stock)?

 Yes

 No

26
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

If Yes, proceed to Question 5 and 6, if No, proceed to Question 13

Please use the following scale to answer Question 5.

Instructions: For each statement, please check whether you Strongly Agree, Agree,

Neutral, Disagree or Strongly Disagree

5. To what extent do you agree with the following statements about storage of stock in

your business?
Strongly Agree Neutral Disagree Strongly

Agree Disagree
i. Warehouse We insure

all our inventory (stock)

in the
ii. We own our warehouse

6. Do you plan in advance before ordering inventory (stock) for the warehouse in your

business?

 Yes

 No

If Yes, proceed to Question 7, if No, proceed to Question 10

7. Do you prepare inventory (stock) budgets in your business?

 Yes

 No
8. Do you compare inventory (stock) ordered to the budgets regularly in your business?

 Yes

 No
9. Do you update the inventory (stock) budgets regularly in your business?

 Yes

 No
10. Do you conduct stocktaking in your business?
27
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

 Yes

 No
11. If Yes, to Question 10, how often does your business conduct stocktaking?

 Daily

 Weekly

 Monthly

 Every 6 months

 Annually

Other (please specify) ____________________

12. Do you track the movement of inventory (stock) from the time an order is placed to

the time the stock is received?

 Yes

 No
13. Does your business have dedicated staff that manage the warehouse?

 Yes

 No

If Yes, proceed to Question 14, if No, proceed to Question 15

Please use the following scale to answer Question 14.

Instructions: For each statement, please check whether you Strongly Agree, Agree,

Neutral, Disagree or Strongly Disagree

14. To what extent do you agree with the following statements about inventory (stock)

control by your staff in the warehouse?

Strongl Agree Neutral Disagree Strongly

y Disagree

28
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Agree
i. Our warehouse staff

verify delivery, receipt,

and storage of stock.

ii. Our warehouse staff

have access to our

accounting records
iii. We have clear

procedures followed by

staff when receiving

and issuing stock from

our warehouse
iv. Access to our

warehouse is restricted

to authorized staff only

v. Our staff use computers

to record inventory

(stock) received
vi. Our staff use computers

to record inventory

(stock) issued
vii. Our staff can determine

inventory (stock)

balance at any time

viii. Our staff use a

barcoding system to

monitor movement of

29
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

inventory (stock) in the

warehouse

Please use the following scale to answer Question 1.

Instructions: For each statement, please check whether you Strongly Agree, Agree,

Neutral, Disagree or Strongly Disagree

15. To what extent do you agree with the following statements about how your

business received your orders from suppliers?

Receiving Strongly Agree Neutral Disagree Strongly

Agree Disagree
i. Receiving, issuing,

accounting, and storing

responsibilities are

properly segregated.
ii. We match the delivery

to a purchase order.
iii. We conduct a quality

check to ensure the

items are not damaged

or malfunctioning.
iv. We allocate storage

space for inventory

received.
v. We check the contents

of each delivery we

order.
vi. Inventory are removed

30
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

from the inventory

system only when

issued
vii. Inventory are removed

from the inventory

system only when

issued
viii. We stored inventory

according to material

groups
ix. Material stock level are

monitored effectively
Please use the following scale to answer Question 2.

Instructions: For each statement, please check whether you Strongly Agree, Agree,

Neutral, Disagree or Strongly Disagree

2. To what extent do you agree with the following statements about how your business

deliver your orders to customer?

B. Sales Strongly Agree Neutral Disagree Strongly

Agree Disagree
i. We deliver the order

with additional costs

(shipping fee)
ii. We have systems

or processes in place to

ensure order fulfillment

accuracy

31
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

iii. We have no delays in

delivery

iv. We have no delays in

delivery
v. We check the contents of

each order made

vi. Inventory items are

properly recorded and up

to dated

32
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

33
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

REFERENCES(change contents below)

Accountants Candidates. SSRN Electronic Journal.

https://doi.org/10.2139/ssrn.2134406

Accountancy - board exam passing rates. (2018). Retrieved 6 July

2021, from
https://www.finduniversity.ph/exams-results/certified-public-accountant-
licensure-exam-6/

Adcroft, A. (2011, July 27). The motivations to study and expectations of studying
undergraduate students in business and management. Retrieved from
https://www.tandfonline.com/doi/abs/10.1080/0309877x.2011.590581

Bankole Adeyemi, F. (2019). Peer group influence on academic performance of

undergraduate students in Babcock University, Ogun State. African
Educational Research Journal, 7(2), 81–87.
https://doi.org/10.30918/aerj.72.19.010

Ballado-Tan, J. (2014). ACADEMIC PERFORMANCE, ASPIRATIONS,

ATTITUDES AND STUDY
HABITS AS DETERMINANTS OF THE PERFORMANCE IN
LICENSURE
EXAMINATION OF ACCOUNTANCY GRADUATES. International
Journal of Education and Research, 2(12).
https://www.ijern.com/journal/2014/December-2014/06.pdf

Cruzada, Deo. (2019, July 27). Behind the boards: CPA topnotchers share exam
preparations, experiences. Retrieved July 6, 2021, from The LaSallian
website:https://thelasallian.com/2019/07/27/behind-the-boards-cpa-
topnotchers-share-exampreparations-experiences/

Darling-Hammond, L. (2000). Teacher Quality and Student Achievement. Education

Policy Analysis Archives, 8, 1. doi:10.14507/epaa.v8n1.2000

34
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Duya, K. (2018). FACTORS AFFECTING THE MOTIVATION OF FCAT

STUDENTS. Retrieved 6 July 2021, from
https://prezi.com/eybgy7p7o50p/factors-affecting-the-motivation-of-
fcatstudents/?fallback=1

Fan, X., & Chen, M. (2001). Parental Involvement and Students' Academic
Achievement: A Meta-
Analysis. Retrieved 6 July 2021,
from
https://www.researchgate.net/publication/226537478_Parental_Involvement_a
nd_Students'_A cademic_Achievement_A_Meta-Analysis

Find University (2021). Retrieved July 7, 2021, from

Finduniversity.ph website:
https://www.finduniversity.ph/universities/new-era-
university/courses/accountancy/

Herrero, C. C. (2015). Influence of Selected Factors on CPA Licensure Examination

Results. International Letters of Social and Humanistic Sciences, 64, 87–93.
https://doi.org/10.18052/www.scipress.com/ilshs.64.87

Laguador, J. M. (2020). Five-Year Declining Performance of Private and Public

Schools in the
Philippine Certified Public Accountant Licensure Examination. European
Journal of
Educational Research, 9(3), 995–1007. https://doi.org/10.12973/eu-jer.9.3.995

Lightweis, S. (2014). Bridging the Gap between Accounting Students and the
Profession: A Case Study.
Higher Education Studies, 4(5). https://doi.org/10.5539/hes.v4n5p18

Nabi Al-Duwaila, & Abdullah Al-Mutairi. (2020, December 30). Factors Affecting
the Success in Certified Public Accountant Exam in Kuwait. Retrieved April
15, 2021, from ResearchGate website:
https://www.researchgate.net/publication/348071903

35
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Momany, M. T. (2012). The Relationship between Professional Exam Performance

and Certain
Demographic Characteristics of Jordanian Certified Public Accountants
Candidates. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2134406

Marc. (2016, September 11). Applying Attribution Theory To The Classroom.

Retrieved April 25, 2021, from Psych(ed) website:
https://psychologyineducation.wordpress.com/2016/09/11/applyingattribution-
theory-to-the-classroom/

Oliva, C., Aclan, G., Quimio, A., Salayo, M., Rodriguez, A., & Manongsong, J.
(2017). Retrieved 6
July 2021, from https://research.lpubatangas.edu.ph/wp-
content/uploads/2017/06/APJARBA2017.3.04.pdf

Pattaguan (2018). Retrieved 6 July 2021, from

http://www.pbr.co.in/2018/2018_month/March/23.pdf

Uplifting Education (2015, April 16). The Compass Advantage.

Retrieved from
https://www.upliftingeducation.net/post/2015/04/16/the-compass-advantage

Seifert, K. & Sutton, R. (2017). Motivation Theories on Learning. Retrieved April 12,
2021, from
Pressbooks.com website:
https://lidtfoundations.pressbooks.com/chapter/student-motivation/

Sugue, Winona (2018). 5 Effective Study Tips From A CPA Licensure Exam
Topnotcher. (2018). Retrieved July 7, 2021, from @edukasyonph website:
https://www.edukasyon.ph/blog/5effective-study-tips-from-a-cpa-board-exam-
topnotcher

Sugahara, S., Hiramatsu, K., & Boland, G. (2009). The factors influencing accounting
school students’ career intention to become a Certified Public Accountant in
Japan | Emerald Insight. (2013). Asian Review of Accounting.
https://doi.org/10.1108\/ara

Valencia, R. (2012). RRL-BOOK-LENA.docx - THE REVIEW OF RELATED

LITERATURE
Valencia(2012 revealed \u201cThere is no shortcut to passing the CPA
exam.\u201d The

36
 New Era University
College Of Accountancy
No. 9 Central Avenue, New Era Quezon City, Philippines

Certified Public | Course Hero. Retrieved 6 July

2021, from
https://www.coursehero.com/file/50230421/RRL-BOOK-LENAdocx/

Yu, D. (2016). How Much Do Study Habits, Skills, and Attitudes Affect Student
Performance in Introductory College Accounting Courses?. Retrieved 6 July
2021, from https://files.eric.ed.gov/fulltext/EJ955535.pdf

37