Reference no: EM132587595

Monash Clayton Cosmetics supplies a range of beauty products for women and uses a computerised inventory system. Each product has an 8-digit number. The first 4 digits give the class of the product (hair, face, eyes, etc.). The last four digits are unique to the product itself.

Question a. The coding system limits the maximum number of products in each class. What is the maximum number of products possible in each product class under this coding system? Explain your answer.

Question b. Name and describe two computer tests (controls) that you would recommend to ensure that only valid product codes are entered when creating new products on the inventory masterfile.

Question c. Name and describe two computer tests (controls) that you would recommend to ensure the correct product code is entered when manually updating the inventory masterfile after stocktaking.

Question d. From a business point of view, discuss whether it is important or not to use coding systems in manufacturing processes. Explain your position.