Final For Redefense

1
APPROVAL SHEET
In partial fulfillment for the degree of BACHELOR OF SCIENCE IN ACCOUNTANCY,
this research paper entitled THE LEVEL OF ADHERENCE OF SELECTED UNIVERISTY
BOOKSTORES IN NATIONAL CAPITAL REGION TO THE PRESCRIBED
CONSIGNMENT PRACTICES: A COMAPARATIVE STUDY has been prepared and
submitted by DAN PAUL C. BEGAS, RENZ MICO F. CORONA, CHRISTINE ANGELA B.
CRUZ, ALLANIAH H. MACA-ALIN, RED CHRISTIAN L. PALUSTRE, who are hereby
recommended for Oral Examination.
_____________________________
MELZIEL ANDAG EMBA, CPA
Adviser
Approved by the Committee on Oral Examination with the grade of _____.
_______________________
JASON R. RADAM, CPA
Member
________________________
DON MAGPANTAY, PhD
Member
__________________________
LICO C. REYNOSO, PhD
Chairman
Accepted and approved in partial fulfillment of the requirements for the degree of
BACHELOR OF SCIENCE IN ACCOUNTANCY.
________________________________________
MARIA VERONICA JOY M. BINUYA, PhD
Officer-in-Charge, College of Accountancy and Management
Date: May, 2016
ACKNOWLEDGMENT
We, the researchers, would like to extend our gratitude to the following persons for their
utmost guidance and support:
Dr. Lino C. Reynoso for his enlightening lectures and directions about the proper writing
of this thesis paper;
Prof. Melziel Andag Emba, our adviser, for sharing his expertise to us and guiding us to
make this paper as accurate as possible;
Prof. Amir T. Auditor, for pondering our ideas and giving some extra advices regarding the
content of this paper;
Dr. Ma. Veronica Joy M. Binuya, Dean of College of Accountancy and Management, for
her comments and suggestions that further rectify the flow of our paper;
Our parents, for their genuine support and understanding while we, the researchers are
working on the content of this paper
And above all, our Lord, Father Almighty, for the strength, wisdom, courage and tenacity
that make us survive circumstances which tested our knowledge and patience while working on
this paper. Without His presence, we, the researchers, would not accomplish this requirement.
We dedicate this paper to all of you! To God be the glory!
RESEARCH ABSTRACT
Research Title
THE LEVEL OF ADHERENCE OF SELECTED

UNIVERSITY BOOKSTORES IN NATIONAL
CAPITAL
REGION
CONSIGNMENT
TO
THE
PRESCRIBED
PRACTICES: A COMPARATIVE
STUDY
Researchers
DAN PAUL C. BEGAS

RENZ MICO F. CORONA
CHRISTINE ANGELA B. CRUZ
ALLANIAH
RED
H.
MACA-ALIN
CHRISTIAN
L.
PALUSTRE
Degree Conferred
BACHELOR OF SCIENCE IN ACCOUNTANCY
School
MANILA TYTANA COLLEGES
Adviser
PROF. MELZIEL ANDAG EMBA, CPA
Date Completed
APRIL 2016
No. of pages
173 pages
Consignment is an important topic in accounting but has been barely tackled by the
students. The researchers want to have a specific study about the consignment topic and help
other persons to raise awareness about the entire system of consignment. The researchers also
want to know more about their real consignment accounting procedures and internal control
practices and match it to the theory stating it. Aside from these reasons why there is a need to
have a study about consignment, there are also issues that are needed to be addressed regarding
some material misstatements, updates of inventories and of course the internal control issues of
consignment. The researchers also intend to gather the data about the bookstores consignment
practices; and compare and contrast them. The objectives of the study are the following: (1)
group the bookstores according to years of operation; (2) determine the level of adherence of
selected university bookstores to the prescribed consignment practices; (3) determine if there is a
difference in the consignment practices of selected university bookstores when they are grouped
according to years of operation; (4) recommend or communicate gathered information to
bookstores sampled; and (5) identify topics for future research.
The population is all university bookstores in the whole Philippines that employ
consignment. According to Commission on Higher Education (2015), there are 2, 180
universities in the Philippines. Some universities do not have bookstore at all. Some have but not
operated by the university itself, and some have operated by cooperatives. The focus of this
research is for those owned by the university through the finance department. With its wide
scope, population was narrowed down using the following criteria, as purposive sampling was
used: (1) the university should be located within NCR area, (2) the bookstore should be owned
and operated by the university, (3) the student population must be at least 10,000 for the current
school year, and (4) the personnel (as representative) should have knowledge on both accounting
procedure and internal control of the university bookstores consignment practices. The number
of respondents who qualify for the criteria given is ten (10) from ten different universities.
Questionnaire will be utilized as a tool for gathering data. It is an adapted questionnaire using
different standards and pronouncements about consignment accounting procedure and internal
control. The tool consists of eight parts; one for the demographics and seven for the consignment
practices with five questions each form a combination of accounting procedure and internal
control provisions. The first part of the questionnaire will represent the first specific problem,
What is the profile of selected university bookstores in terms of years of operation? The
second part of the questionnaire will represent the second specific problem, What is the level of
adherence to the prescribed consignment practices of university- bookstores in terms of: (a)
delivery of goods; (b) risk of loss, damages and confusions; (c) efforts to sell; (d) payment, sales
and commission; (e) return of products; (f) termination; and (g) legal items? Results from the
first part of the questionnaire were tallied together in a frequency table used to create charts.
Results from the second part of the questionnaire were tallied together by dimension. From
thirty-five (35) questions, mean was computed for every statement and every category of
consignment practices, and the result served as level of adherence of the sample to the prescribed
consignment practices. Each analysis was presented in a tabular form. Standard deviation were
used to measure how each response is closer or farther from the mean and how groups of
response were scattered or compacted around the mean. The non-parametric test used is
Kruskall-Wallis where the Chi Square and asymptotic significance value (below 0.05)
determines the acceptance and rejection of hypothesis. The researchers made use of software
IBM SPSS Statistics 22 to generate the statistical results of the gathered data.
The researchers had ten (10) respondents. Most of them were operating for 6-15 years. It
suggests that most of the respondents were just recently established due to increase in student
population that affirms to having a campus bookstore. Based from the results of the analysis
using weighted means on the over-all consignment practices, it was determined that the
composite mean on this criterion was 2.68 which can be described as Adhere. It has a standard
deviation of 0.15. Moreover, it suggests that the bookstores sampled always practiced the
prescribed consignment practices. Based from the results of the analysis using Kruskall-Wallis H
test to test the difference in the level of adherence on the prescribed consignment practices when
grouped according to years of operation, it showed that all statements Sig are above .05; accept
the null hypothesis, interpreted as "Not Significant". In overall, it showed a Sig of .059, above .
05; accept the null hypothesis, interpreted as "Not Significant".
Therefore, it can be concluded that the level of adherence of bookstores sampled to the
prescribed delivery of goods; risk of loss, damages and confusions; efforts to sell; payment, sales
and commission; return of products; termination; and legal items practices does not vary when
grouped according to years of operation. In general, it can also be concluded that bookstores
sampled always practiced the prescribed delivery of goods; risk of loss, damages and confusions;
payment, sales and commission; return of products; termination; and legal items practices,
regardless of their years of operation in the book consigning retailing business. In general, they
adhere to the prescribed delivery of goods; risk of loss, damages and confusions; payment, sales
and commission; return of products; termination; and legal items practices, regardless of their
years of operation in the book consigning retailing business. On the other hand, in general, it can
be concluded that bookstores sampled sometimes practiced the prescribed effort to sell practices,
adhere with limitations to the prescribed efforts to sell practices, regardless of their years of
operation in the book consigning retailing business.
TABLE OF CONTENTS
Approval Sheet
Acknowledgement
ii
Research Abstract
iii
Table of Contents
vii
List of Tables
ix
List of Figures
List of Appendices
xi
CHAPTER
II
PAGE
PROBLEM AND ITS BACKGROUND

Introduction
Background of the Study
Theoretical Framework
Statement of the Problem
10
Hypothesis
11
Significance of the Study
11
Scope and Delimitation
13
Definition of Terms
14
REVIEW OF RELATED LITERATURE AND STUDIES

Local Literature
19
Foreign Literatures
23
Local Studies
28
Foreign Studies
31
Relevance to the Present Study
35
III
METHOD AND PROCEDURE

Research Design
36
Sample and Sampling Technique
36
Research Instrument and Technique
38
Data Gathering Procedure
39
Statistical Treatment of Data
41
IV
PRESENTATION, ANALYSIS AND INTERPRETATION

OF DATA
SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION
44
Summary of Findings
89
Conclusion
92
Recommendation
94
REFERENCES
98
APPENDICES
103
LIST OF TABLES
TABLE
PAGE
List of universities that Met the Criteria of the Researchers
37
Pointing system to be used to measure adherence
42
Table Format for Illustrating Frequency and Percentage of

Respondents' Profile
42
Frequency and Percentage Distribution of The Respondents

Profile According to Years of Operation
44
Level of Adherence of Selected University Bookstores to the

Prescribed Delivery of Goods Practices
45

Prescribed Risk of Loss, Damages and Confusions Practices
47

Prescribed Efforts to Sell Practices
50

Prescribed Sales, Payment and Commission Practices
53

Prescribed Return of Products Practices
56

Prescribed Termination Practices
59

Prescribed Legal items Practices
62

Prescribed Consignment
65
4
5
6
7
8
9
10
11
12
13
Differences in the Level of Adherence to the Prescribed Delivery

of Goods Practices when Grouped According to Years of Operation
68
10
14
Differences in the Level of Adherence to the Prescribed Risk of

Loss, Damages and Confusions Practices when Grouped According to Years
of Operation
70
15
Follow-up Test on the Differences in the Level of Adherence of

Selected University Bookstores on the First Practice of the Risk of
Loss, Damages and Confusions Category When Grouped According to
Years of Operation
72
Follow-up Test on the Differences in the Level of Adherence of

Selected University Bookstores on the Fourth Practice of the Risk of
Loss, Damages and Confusions Category When Grouped According to
Years of Operation
74
Differences in the Level of Adherence to the Prescribed Efforts to

Sell Practices when Grouped According to Years of Operation
76
Differences in the Level of Adherence to the Prescribed Payment,

Sales and Commission Practices when Grouped According to Years
of Operation
78
Differences in the Level of Adherence to the Prescribed Return of

Products Practices when Grouped According to Years of Operation
80
Differences in the Level of Adherence to the Prescribed Termination

Practices when Grouped According to Years of Operation
82
Differences in the Level of Adherence to the Prescribed Legal Items

84
Differences in the Level of Adherence to the Prescribed Consignment

86
16
17
18
19
20
21
22
LIST OF FIGURES
FIGURES
PAGE
1 The Research Paradigm of The Research
2 Data Gathering Procedure Flow Diagram
39
11
LIST OF APPENDICES
APPENDIX
PAGE
Recommendations and Suggestions of the Panel Members
Prescribed Consignment Accounting Questionnaire, Certificates

of Validation, Reliability Testing Results
102
107
C
Kruskall-Wallis H Test Results
126
Communication Letters
141
Certifications
144
Gantt chart and Line Item Budget
146
Photographic Documentations
149
Curriculum Vitae
151
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CHAPTER I
The Problem and Its Background
Introduction
In a market where certain businesses must aim bigger sales, it is essential for them to
reach a wider horizon for their products to be sold productively. It is when consignment
arrangements take place. According to Merriam-Webster Dictionary, consignment means the act
or process of sending goods to a person or place to be sold. In another plausible definition,
consignment means act of giving over to another person or agent's charge, custody or care any
material or goods but retaining legal ownership until the material or goods are sold. That may be
done for the purpose of shipping the goods, transferring the goods to auction or intending the
goods to be placed on sale in a store. It is also very important to take note that consignment
relationship between the "consignor" (distributor of the goods) and the "consignee" (receiver of
the goods) is different from that of the seller-buyer relationship.
In a realistic situation, seller transfers the ownership of the goods to the buyer, whereas
consignor transfers possession of the goods to the consignee for the purpose of selling them for
the consignor. In a simple note, meaning, the consignor still owns the goods. Contrary to the real
arrangements of consignment, if there is any case of doing acts not contemplated in the
consignment agreement and pocketing of the sales of consignment goods by the consignee, an
act of embezzlement has been therefore committed. Knowing the real meaning of consignment,
consignment has also the standards to monitor the process of it. Many industries use this kind of
process including clothing, furniture, antiques, toy and even books. In fact, consignment is
properly observed in the selected university bookstores practices by selling the books of the
bookstore or publisher owning it.
This study about consignment aims to recount the processes taking place between the
consignor and consignee and also compare if theories supporting consignment accounting and
the real-world practices happening between the two parties are parallel or of the same level. This
also aims to discuss the entire process since this topic has been barely studied by all. This gives
the researchers more area to study its entirety in different perspectives using selected university
bookstores as the subject of the study.
Background of the Study
Consignment is an important topic in accounting that is but has been barely tackled by
the students. The researchers want to have a specific study about the consignment topic and help
other persons to raise awareness about the entire system of consignment. The researchers also
want to know more about their real consignment accounting procedures and internal control
practices and match it to the theory stating it.
Aside from these reasons why there is a need to have a study about consignment, there
are also issues that are needed to be addressed regarding some material misstatements, updates of
inventories and of course the internal control issues of consignment.
The researchers also intend to gather the data about the bookstores consignment
practices; and compare and contrast them.
The objectives of the study are the following: (1) group the bookstores according to years
of operation; (2) determine the level of adherence of selected university bookstores to the
prescribed consignment practices; (3) determine if there is a difference in the consignment
practices of selected university bookstores when they are grouped according to years of
operation; (4) recommend or communicate gathered information to bookstores sampled; and (5)
identify topics for future research.
Conceptual Framework
A consignment agreement is an agreement between a consignee and a consignor for the
storage, transfer, sale and resale of goods delivered (Civil Code of the Philippines). Businesses
choose consignment arrangements for many reasons. They may want to test marketplace demand
for a new product. Those stores can sell goods on consignment without investing initial capital in
purchasing them outright. Although a consignment arrangement maybe profitable for both
retailer and creator in the long run, it is essential that at the outset each party signs and maintains
paperwork sufficient to protect and satisfy its individual interests. A well-drafted consignment
agreement must provide for some form of inventory control and a clear allocation of the rights
and responsibilities of each party.
The need for a complete concept is laid down by LegalZoom (2010); an online legal
technology department that provides legal solutions in various common categories including, but
not limited to copyrights, DBAs, divorce, business formation, trusts, wills, name changes,
patents, power of attorney, pre-nuptial agreements, real estate leases, trademark registration. It
minimizes agreement confusion, misunderstanding and error, and clearly sets forth the parties
expectations and fulfillment of obligations. Since the opening of LegalZoom, it has rapidly
expanded to become the premier online legal destination for small businesses and consumers
around America and neighboring countries.
The provisions given as stated were only applicable to the country of origin (U.S. of A.). To
provide credibility and applicability, the specific provisions given by LegalZoom were validated
by a competent lawyer in the Philippines, and he further authorized the provisions therein as
applicable and in accordance with the existing Philippine Commercial Law for similar and
identical retailing business in the Philippines. It is to be noted that university bookstore is a type
of retailing business in the point of view of the consignor. Why there is no immediate and direct
consignment law in the Philippines? It is with the reason that stipulations are disseminated
among different laws pertaining to sales, agency, contracts, and specific commercial laws.
Although deviations, additions and omissions are evident, the following provisions (categories)
of a consignment agreement came out from the investigation: Delivery of Goods; Risk of Loss,
Damages and Confusions; Efforts to Sell; Payment, Sales and Commission; Return of Products;
Termination; and Legal Items. The lawyer further clarified that these provisions are included in
the standard consignment agreement used by different retailers and consignors in the Philippines.
Consignment practices were composed of two major components: accounting procedure
and internal control. Accounting procedure was based from Philippine Accounting Standards,
while internal control was based from COSO Internal Framework through the use of
LegalZooms General Consignment Policies and Procedures, subject to applicability and
accordance to Philippine standard and accepted practices.
Accounting procedure as one of the components of consignment practices includes
journal and memorandum entries involve in the consignment process between the consignor and
the consignee. According to Kieso et al. (2012), thru International Accounting Standards 2 and
18- Inventories and Revenue Recognition, respectively, accounting procedures for consignment
start from receipt of goods and ends to termination of the contract. Every category in
LegalZooms Consignment Agreement has counterparts accounting procedures involved.
First, for the delivery of goods, at receipt of goods only a memorandum entry is done
because goods are not part of the consignees inventory. This is not his asset. The title retains to
the consignor. All delivery cost should be reimbursable to the consignor and recorded as this was
paid by the consignee. Second, during operation, risk of loss, damages and confusions will
probably be encountered. An expense is recorded if it was the negligence of the consignee. Next,
business needs innovation; efforts to sell are very important. Consignee records advertising
expenses incurred as reimbursable to the consignor. Then, during every period ends, as agreed
between the consignee and the consignor, accounting is very much needed for payment, sales and
commission. Recordation of sales, its notice and remittance to the consignor will be journalized
by the consignee. Lastly, at every period ends, return of goods including those returned from
customers is a normal activity. A memorandum entry will be recorded by the consignee
specifying the goods to be returned. One to fifth, repeats and repeats, and will terminate only
when call for termination happens. Finally, ending of the contract from any reason is return of
products at termination, not at period end. Also a memorandum entry will be recorded by the
consignee specifying goods to b returned at termination. Legal items accounting procedure
encompasses correct presentation, classification, and disclosure of consignment specific accounts
to be recognized and measured throughout the consigning operation.
Therefore, accounting is very evident and needed throughout the consigning operation of
the consignee.
On the other hand, internal control as second component of consignment practices
includes directive, preventive, and detective controls for the efficient and effective operation of
the consigning of the consignee. It is a process of assuring achievement of an organization's
objectives
in
operational effectiveness and efficiency,
reliable
financial
reporting,
and
compliance with laws, regulations and policies. It is a process that also starts from receipt of
goods and ends in termination of contract, just like accounting procedures.
First, for the delivery of goods, preventive controls should be implemented before, during
and after the process of receiving goods delivered. Second, during operation, risk of loss,
damages and confusions will probably be encountered. To prevent confusions and detect some
already existing loss and damage, preventive and internal controls should be implemented. It
involves examining, insuring, segregating and specifying goods at all times during operation.
Next, business needs innovation; efforts to sell are very important. Consignee should implement
directive controls; controls that will direct the business to achieving goals. The goal is not just to
earn income and loyalty form customers, but to earn constantly increasing income and loyalty
form customers. Through doing basic marketing controls, as marketing controls are components
of directive internal control, one of the foremost goals can be achieved. Then, during every
period ends, as agreed between the consignee and the consignor, internal control is very much
needed for payment, sales and commission. Reconciliation as detective, and at the same time,
preventive control, should be implemented to check recordation of sales; proper remittance
program should be implemented to guide the remittance and notification to consignor. Lastly, at
every period ends, return of goods including those returned from customers is a normal activity.
Goods at this point are to be returned; even unsold or defectives. Proper marking and segregating
supports what is entered through memo. These are preventive controls to avoid return of products
issues. No Return, No Exchange policy should not be followed. One to fifth categories, repeats
and repeats, and will terminate only when call for termination happens. Finally, ending of the
contract from any reason is return of products at termination, not at period end. Also, goods at
this point are to be returned; even unsold or defectives. Proper marking, specifying, and
segregating supports what is entered through memo. These are preventive controls to avoid
return of products issues during termination. Termination causes should be justified. Legal items
internal control encompasses adherence to the law. The law is by itself a directive internal
control for both the consignee and the consignor that should always be followed throughout the
operation up to termination of the consigning of the consignee.
Therefore, internal control is also very evident and needed throughout the consigning
operation of the consignee.
Both components work hand in hand for a well-established consignment operation.
Categories form LegalZooms consignment agreement have counterparts for both accounting
procedure and internal control. In addition, as described by International Accounting Standards
and LegalZooms General Consignment Policies and Procedures, these categories from
LegalZooms Consignment Agreement are the major categories or topics of explanation in both
of the IAS and LegalZoom General Consignment Policies and Procedures.
Selected university
bookstore that
Employs
Consignment
Recommendations
Years of Operation
1-5 years
6-10 years
11 years and
above
Consignment Practices
Delivery of goods
Risk of loss, damages and confusions
Efforts to sell
Payment, sales and commission
Return of products
Termination
Legal Items
Level
of
Adherence
to
Prescribed Consignment Practices

Delivery of goods
Efforts to sell
Payment, sales and commission
Return of products
Termination
Legal Items
Figure 1.The research paradigm of the research.
Selected university bookstores are bookstores owned and operated by the university management
itself who qualify for the other criteria given. The level of adherence to the following categories
will first be known in overall. The study wants to know if bookstores sampled already adhere to
the prescribed consignment practices. Specifically, the study wants to know their level of
adherence to the seven major categories of the consignment practices namely: delivery of goods;
risk of loss, damages and confusions; efforts to sell; payment, sales and commission; return of
products; termination; and legal items as described in above. Accounting procedure and internal
control are both inherent in every category (delivery of goods, risk of loss and damages, efforts
to sell, payment and commission, return of products, termination, legal items) listed above. This
will answer the second specific problem. This will give an overall outlook to the current level of
adherence of selected university bookstores in National Capital Region to the prescribed
consignment practices. Further to this, recommendations will be given, in general, from the
results.
However, the depth of the study finds its way when Athitakis (2012) and other literatures,
stated that the longer the consigning business is running, the more it tends to innovate and
establish more its operations as compared to those running for shorter years. Accordingly, the
bookstores source of their profile will be the bookstores years of operation in the book
consigning business. This will answer the first specific problem. This will give the comparability
sense of the study. Shorter and longer can be describe using their years of operation. In addition,
the establishment and innovation of the bookstore emulates their level of adherence to what are
prescribed by different authority organizations and the law of the country where the business is
operating, with respect to the different categories of the prescribed consignment practices. Most
important is that the prescribed consignment practices mentioned above take into the form of the
questionnaire, devised by the researchers, which will be given to the selected university
bookstores. With this, the study wants to know if there are significant differences in the level of
adherence of selected university bookstores to the prescribed consignment practices if they are
grouped according to years of operation as follows: 1-5 years, 6-10 years, and 11 years and
above. This will answer the third specific problem. Further to this, recommendations will be
given from the comparable results, if any, to the bookstores sampled.
10
The study does not want to know the relationship between years of operation and level of
adherence. Instead, differences between the groups will be studied, for the reason that a
difference will further support the claim of Athitakis and other literatures as candidate for its
applicability to the Philippine setting. The foundation describing the difference in the Philippine
setting is expected to be of great framework for future study of a deeper and more complex
relationship, not differences anymore, between the two. Then, Athitakis concept will be proven
applicable to the Philippine setting.
Statement of the Problem
The study aims to compare the consignment practices of selected university bookstores in
National Capital Region.
Specifically, the following research queries will be answered:
1. What is the profile of the bookstores in terms of years of operation?
2. What is the level of adherence of selected university bookstores to the prescribed consignment
practices, in terms of:
2.1. Delivery of goods;
2.2 Risk of loss, damages and confusions;
2.3 Efforts to sell;
2.4 Payment, sales and commission;
2.5 Return of products;
2.6 Termination; and
2.7 Legal items?
11
3. Is there a significant difference between the levels of adherence to the prescribed consignment
practices of the selected university bookstores when they are grouped according to years of
operation?
Hypothesis
Based from the problem of the study, the research hypothesis will be formulated and
tested at the level of significance of 0.05:
Hypothesis I
There is no significant difference between the levels of adherence of the selected
university bookstores to the prescribed consignment practices when they are grouped according
to years of operation.
Significance of the Study
The significance of this study is for the stakeholders to be aware of the consignment
practices of selected university bookstores in terms of accounting procedure and internal control.
The following stakeholders are: Finance department and bookstore of universities, the academe
and the students; the consignor (distributor) and future researchers. The benefit of gaining
knowledge about the level of adherence to the prescribed practice existing in our industry of
selected university bookstores is to be compared and contrasted with the existing literatures
researched and collected by the researchers.
To the university bookstores sampled (consignee)
The result of this study is relevant to the selected university bookstores to determine level
of policy needed to be implemented in terms of internal control and accounting procedures. In
addition, this helps the bookstores look at the industry average, and adapt or replicate the best
practices to be recommended by the researcher. Proper training and orientation can be done to
12
ensure that prescribed practices are being adhered perpetually.

To the consignor (or distributor)
The benefit of the consignor will enable them to assess the selected university bookstores
where they consigned their books. The assessment serves as a measurement of their decision
whether to consign their books on a certain university or not. It will also serve as gauge for
monitoring bookstores performance.
To the academe specially in accounting (and students)
The results from this study will serve as basis for having a more extensive knowledge
about the ins and outs of the consignment business setting and inventory management. Students
will have a background on the real world consignment business, as those written on the books
are theoretical only.
To MTC bookstore
The results from this study can be used to benchmark MTC bookstores current operation.
Either the consigment business is within a university or a college, the same prescribed
consignment practices applies. They can adapt different practices so long as it is operational and
financially effective.
To the future researchers
The delimitation of this study due to the incapability of the researchers can be conducted
by the future researchers. They can think of other grouping variables and other dimensions of the
consignment business, aside from accounting procedures and internal control. Will geographical
location affect the level of adherence? Or will number of books consigned affect it?
13
Scope and Delimitations

Selected university bookstores that uses consignment, as another part of the criteria, are
studied; represented by its selected personnel provided by the laid out criteria. Practices of
university, other educational institutions and independently-owned bookstores and any difference
of practices between the two (university and others) are not studied.
These bookstores should be located within NCR area. Bookstores located outside are not
studied and any difference of practices between the two (NCR and outside) as well.
The paper focuses on the consignee party of consignment accounting. Practices of
consignors (distributors and/or publishers) and any difference of practices between the two
(consignor and consignee) are not covered.
Those personnel who knew both the accounting procedure and internal control of
consignment of their respective university bookstore are likely to fit with the implicit objective
of the studyto gain knowledge first hand. Those who know either the accounting procedure or
internal control practice, and any difference between the two (those who knew both and those
who not) are not studied.
Another criterion set by the researchers is, the university must have a student population
of at least 10,000 in the current school year. University bookstores having a below the required,
and any difference between the two (with at least 10,000 and with 10,000 below) are not studied.
Due to the criteria set by the researchers, there were only 10 universities available and
qualified to be the respondents of the study. Only 1 (one) respondent per university serves as the
representative and will answer the questionnaire given.
Lastly, other categories left in the LegalZoom Consignment Agreement, all also in
accordance with Philippine laws, are not studied in this paper. Only the seven major categories
14
are explored. The remaining more complex matters like taxes and benefits will be recommended
for future studies.
Definition of Terms
This paper is a quantitative research about consignment accounting. The terms from the
title, statement of the problem and research paradigm were selected to be defined. It contains
mostly technical terms which were used only by the professionals in the accounting field and in
the business world. Defining those uncommon terms is necessary for the full understanding of
the topic and to make the research much clearer to the non-accounting readers.
The following were defined for clarification:
Accounting Procedures
These are methods and procedures which an organizations management institutes to ensure that
accuracy and validity of accounting records. It also provides a good foundation of the accounting
information system of the consignment business, as these procedures are a necessity for its good
foundation. It starts from classifying accounts to be recorded up to reconciliations of accounts
recorded.
Consignee
In a contract of carriage, the consignee is the entity who is financially responsible (the buyer) for
the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver. If
the distributor dispatches an item to the bookstore via a delivery service, the distributor is
the consignor, the bookstore is the consignee, and the deliverer is the carrier. In this particular
study, the consignee is the university-based bookstore.
15
Consignment
Consignment is the act of consigning, the act of giving over to another person or agent's charge,
custody or care any material or goods but retaining legal ownership until the material or goods
are sold. Just like the others, bookstores consignment arrangements typically are in effect for a
set period of time. After this time, the goods are returned to the distributor. Typically, the
consignor receives a percentage of the sale (sometimes a very large percentage).
Consignor
The consignor, in a contract of carriage, is the person sending a shipment to be delivered whether
by land, sea or air. Some carriers, such as national postal entities, use the term "distributor" or
"shipper" but in the event of a legal dispute the proper and technical term "consignor" will
generally be used. If distributor sends a widget to bookstore via a delivery service, distributor is
the consignor and bookstore is the consignee. In this study, the book distributors are the
consignors.
Delivery of goods
This is a consignment practices category which involves accounting procedure from recordation
of memorandum entry, and internal control practices from the receipt up to the storage of
received consigned goods from the consignor.
Efforts to sell
of advertising expense incurred, and internal control to promote the sale of the items consigned.
These policies and procedures should take into consideration how to increase the demand for the
goods, either directly or indirectly. It involves the most important insurance of goods.
16
Force Majeure
It is a common clause in contracts that essentially frees both parties from liability or obligation
when an extraordinary event or circumstance beyond the control of the parties, such as a war,
strike, riot, crime, or an event described by the legal term act of God (hurricane, flood,
earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations
under the contract. In practice, most force majeure clauses do not excuse a party's nonperformance entirely, but only suspend it for the duration of the force majeure.
Internal Control
Internal control, as defined in accounting and auditing, is a process for assuring achievement of
an organization's objectives in operational effectiveness and efficiency, reliable financial
reporting, and compliance with laws, regulations and policies as applicable to a consignment
business as components of directive controls aside from preventive and detective. A broad
concept, internal control involves everything that controls risks to an organization.
Legal Items
and disclosure of special accounts, and directive internal control practices from regulatory
framework items to insure adherence to Philippine consignment contract laws.
Payment, Sales and Commission
This is a consignment practices category which involves accounting procedure from recording
sales, notifications up to remittance to consignor, and internal control procedures for insuring
that the most important financial and reconciliation matters are guided by these established
controls.
17
Prescribed
From thorough validation of validators and competent lawyer, a list of consignment practices
applicable and in accordance with Philippine Law was laid down. These practices therefore are
called prescribed as these should be followed for the bookstores sampled to adhere not just to
the practices but to the related laws concerning the consignment business operations.
Return of Products
of memorandum entry for returned goods, and internal control for insuring that goods to be
returned are segregated and identified (as defective) prior to actual return. It also includes the No
Return, No Exchange policy issue.
This is a consignment practices category which involves accounting procedures from recording
of those loss and damages expenses as liability of consignee, and internal control policies and
procedures on how to prevent loss and damages by taking care of the goods with the diligence
of a good father of a family.
Selected university bookstores (university bookstores sampled)
These are bookstores that are controlled and owned by the universities which, in actual practice,
employ consignment in their operations. Selected university bookstores across NCR region are
verified if they manage a bookstore that sells books among students. It is an extension of the
universitys finance department/directorate. These are bookstores that qualify from the criteria
used in purposive sampling.
18
Termination
of memorandum entry for returned goods at time of termination, and internal control for insuring
that goods to be returned are segregated and identified prior to actual return at termination at
proper legal termination proceedings. The only difference is that return of products is contingent,
while that of termination is determinable.
19
CHAPTER II
Review of Related Literature and Studies
Local Literature
According to Valix & Peralta (2014), a consignment is a method of marketing goods in
which the owner called the consignor transfers physical possession of certain goods to an agent
called the consignee who sells them on the owners behalf. Consigned goods shall be included in
the consignors inventory and excluded from the consignees inventory. When consigned goods
are sold by the consignee, a report is made to the consignor together with a cash remittance for
the amount of sales minus commission and other expenses chargeable to the consignor.
According to DOH (2015), they have defined consignment as the arrangement where the
following requirements are present: (1) Delivery of goods by the owner (consignor) without sale,
to a government agency (consignee) (2) Consignee must try to sell the goods and remit the price
of the sold goods to the consignor. (3) Consignee accepts without any liability except failure to
reasonably protect them from damage. (4) At terms not disadvantageous to the government.
Access to pharmaceuticals is affected by different factors such as the prices of medicines,
economic capacities, presence of healthcare providers, availability of health related infrastructure
(e.g. drug outlets, clinics, and hospitals) regulatory environment and cultural processes to the
government in order to improve health outcomes and foster national development. In order to
bridge the gap between the mandate to deliver basic health services to the public and the
inadequacy of resources, the Department of Health (DOH), has designed a drug consignment
schemes for the purpose of adhering to the basic principles of transparency and competitiveness.
20
In the article Selling strategy for newbies: consign your product by The Philippine Online
Chronicles (2011), consigning means letting others sell for you. In this kind of arrangement,
goods change hands but money does not at least not yet. You consign your product when you
deliver it (or it is picked up) by another business, usually a retailer or vendor, with the
understanding that you will get paid only after it has been sold. In a manner of speaking, you are
lending your products to a vendor usually a retail store owner who typically displays your
wares and includes them in his product lines. If the merchandise sells, he pays you the agreed
percentage and other costs. The arrangement is advantageous to both consigner you and the
consignee the vendor or retailer. Consignment provides you with a sales outlet for your
products, minus the rental costs, maintenance expenses, utilities, labor and countless other
expenses that you would have incurred if you had your own store. On the other hand, retailers
and vendors welcome consigned goods as this allows them to stock up on products without tying
up their money in inventory uncertain to be sold. Offered even an unknown product or brand on
consignment, a retailer would tell himself: I have nothing to lose. It is not of course the most
ideal situation for you as producer. You must have enough cash on hand as you wait for your
goods to be sold at your consignees outlets. In the end, you may find yourself swamped with
piles of unsold, returned, possibly spoiled merchandise.
With no money invested, your
consignees may not have felt obligated to push your products. However, consignment has served
the purpose of many micro and small entrepreneurs.
According to Tan (2010), one of the methods on distributing the books in the Philippines
is the consignment method. It's different from simply selling the books to the bookstore because
aside from all the hassles of consigning a book, unsold copies of the book will be returned. This
means that there is little financial risk on the part of the bookstore but a huge one on the
21
publisher. What if the books don't sell? Then the publisher doesn't earn a thing from his
endeavors. What if the books sell little? Then both the bookstore and the publisher earn little
profit. What if the books sell really well? The bookstore earns a lot and asks the publisher to
consign them more copies of the book if the publisher is lucky. If not, the bookstore earns a lot
and the publisher goes through some red tape to claim his money. He mentioned that there's little
risk on the side of the bookstore. What part is risky? If all the financial investment is on the part
of the publisher and what the bookstore gets is merely the profits, what's the risk for them? Well,
in a bookstore, shelf space is at a premium. Every book you put on the shelf is another book you
don't put on the shelf. If the consignee's books sell well, that's well and good. But what if it
doesn't? Another title might have generated more profits than what the consignee was offering.
That's why there's risk on the bookstore's part as well. Is it as huge as the publisher's? Probably
but then again, the publisher isn't in charge of a large, bookstore retail chain. Most local books
(and not imported international books) make it to bookstore shelves because they are consigned.
It makes perfect sense for the bookstore and the publisher takes a brunt of the risks (which is
why publishers sometimes demand so much from authors--it's their money on the line). He was
talking about publishers earning from their endeavor. So how much money do bookstores place
on consigned books? 40% to 60%. 70% even if you lack negotiating skills. What that means is
that if a local book costs P200 in big bookstore chain, anywhere from P80 to P140 goes to the
bookstore. Of course, around 10% to 20% more can be shaved off if the publisher has good
relations with the bookstore, has a good track record with them, are friends/relatives with the
owner, bribed them with dinner, arranged a PR event for them, etc. There are various methods to
get in the good graces of the big bookstore chains and if you're smart, you'll use them. But the
fact of the matter is, 40% off the suggested retail price at best is still 40% off the retail price. As a
22
publisher, you'll have to accept that around half of what consumers pay won't go to your pockets
but to the bookstore. Having established how much profit a bookstore acquires from consigned
books, you can estimate how much discount a publisher will give the bookstore if the latter buys
their books. That's anywhere from an additional 10% to 20%. So assuming you got a good deal
with the bookstore and you're consigning books to them at 40%, if you want them to buy the
books, you'll have to sell at around 60%.
According to Philippine Star News by Joven (2012), The Iloilo Provincial Board recently
approved a resolution implementing the medicine consignment system for district hospitals in the
province to ensure availability of medicines in all pharmacies of these hospitals. Provincial
Ordinance No. 2012-095, sponsored by PB Member Macario Napulan, covers the Iloilo
Provincial Hospital and 11 district hospitals in Iloilo. Under the ordinance, goods or items
(drugs, medicines, supplies, laboratory equipment, reagents and legal items) that the supplier
delivers would go through the consignment system, said Napulan, health and sanitation
committee chairman. The Hospital Consignment Board will conduct the accreditation of
suppliers, manufacturers and dealers of the items to be consigned. Those who were previously
accredited by the Provincial Hospital Consignment Management Board, and presently
participating in the procurement process, will also be considered for accreditation by the HCB.
Consigned items will be based on the submitted list of items from the therapeutic committees
and other service areas (laboratory, radiology, laundry and admin) and from concerned offices
and divisions of health maintenance organizations (HMOs). The prices of the consigned items
should not be higher than the last recorded procurement price of the same item for a maximum
period of six months, or the reference price should make use of the prevailing price of the
Western Visayas Medical Center and/or the canvass price made by the Technical Support Service
23
Division of the Consignment Management Board within the same period. In cases of
consignments for PhilHealth beneficiaries, the selling price of the items should not be higher
than the prevailing price of the same items in local private pharmacies and outlets. Income
generated sales of the consigned items should be used for the payment of dispenses or utilized
consigned items after the appropriate inventory is conducted. In addition, revenue generated
from the program should be deposited directly to the hospital general fund. For quality
assurance, the consignments items may be subjected to random sampling, inspection and testing
by the consignee and other appropriate support agencies. The consignment system is a method of
assuring the availability of stocks wherein the consignor entrusts its goods to the provincial and
district hospitals pharmacy or other participating division and offices of the consignees for sale.
The consignor shall be paid only for the actual quantity consumed using the money generated
from the sale of the consigned goods within the agreed period of time.
Foreign Literatures
The sales activity of any business can be organized in different ways. With the customers
spread all over, the business entity cannot afford to have only minimum selling points nor can it
have its own resources to have the outlets all over. The business volumes cannot be limited in
any case. The core competence of a manufacturing company is to produce a good quality
product. It creates a network of its own outlets, dealers, commission agents, institutions etc. to
distribute its products efficiently and effectively. Thus the selling may be handled directly
through own salesmen or indirectly through agents. In case of direct selling, the company usually
has depots all over. The stocks are transferred to these depots and from their finally sold to
ultimate customers. This involves huge expenses and problems of maintaining the same on a
permanent basis. Hence, the firm could appoint agents to whom stocks will be given. These
24
agents distribute the products to ultimate customers and receive commission from the
manufacturer. One such way of indirect selling is selling through consignment agents. The
relationship between consignor and consignee is that of Principal-Agent relationship.
Consignment takes place where goods are transferred from the owner (consignor) to an agent
(consignee) for the purpose of sale by the consignee on behalf of the consignor. It is important to
understand that the relationship of principal (consignor) and agent (consignee) exists. Because of
this agency relationship, ownership of the goods does not transfer to the consignee. The
consignee, as the selling agent, is entitles to a commission for selling the goods; expenses may be
incurred by both parties; and periodically or on completion of the consignment, settlement is
effected between the parties. If any goods remain unsold then they are generally returned to the
consignor. Consignment is a fairly common commercial transaction, perhaps more common than
many people may think. (Ajanthan, 2014)
As cited by Kaynak and Seyoum (2014), Consignment Sales is defined as a method in
which the exporter sends the product to an importer on a deferred payment basis; that is the
importer does not pay for the merchandise until it is sold to a third party. Title to merchandise
passes to importer only when the payment is made to the exporter. Consignment is rarely used
between unrelated parties, for example, independent importers and exporters (Goldsmith, 1989).
It is best used in cases involving an increasing demand for a product for which a proportioned
stock is required to meet such need (Tyler, 1994). It is also used when a seller wants to testmarket new products or to test the market in a new country.
According to Bonomo (2013) in theory, a consignment inventory management program
works best at the manufacturing level when implemented as a vendor managed strategy. By
developing a collaborative relationship with parts supplier can determine which items should be
25
placed on a consignment plan. Consumable inventory works best, namely the components,
fasteners, and packaging materials constantly used to accomplish your production. With
consignment inventory management programs, an agreement is established, which outlines each
partys liability obligations, the part prices, and stocking amounts. Using enhanced
communication and software connections that match existing purchasing systems, supplier
transfers inventory shipments to your facility yet retains ownership of those parts until they are
consumed on the assembly line. Bar code scanners and other tools keep accurate data on
consumption levels, allowing supplier to orchestrate replenishment shipments efficiently, issue
purchase orders on a pre-arranged schedule, and effectively manage his own stock levels to keep
facility adequately supplied. Implementing a consignment inventory management program at
manufacturing facility offers numerous cost saving advantages, and should be viewed as a value
added service, the benefits of which continually compound over time. In addition to optimizing
cash flow with an immediate infusion of capital, this inventory strategy offers operational
improvements by decreasing production times, labor costs, and administrative expenses.
Consignment inventory management eliminates line down occurrences caused from stock out
situations, giving the reliance to depend on those items always being available for usage, and
arrange production schedules accordingly. It also allows to respond quickly to changes your own
customers requests, providing a level of service that competitors cannot. Because of the
increased communication between company and supplier, the labor involved in receivable
inspections is significantly reduced. Moreover, the soft costs inherent in handling and carrying
stock is removed, rejuvenating profit margins. Vendor managed inventory programs that include
a consignment inventory management strategy offer manufacturers a myriad of progressive
26
operational advantages, streamlining production times, while simultaneously reducing the

tedious administrative tasks and inspection processes that consume valuable resources.
According to Rettger (2010) at the heart of the Chelsea Green consignment contract is an
agreement between the bookseller and the publisher on the programs goals: to increase sellthrough of titles, allow booksellers to pay for books as they are sold, and further minimize
returns. Booksellers must order enough Chelsea Green titles to fill a dedicated space and agree
to keep titles prominently displayed within their regular categories. Based on monthly sales
reports from the bookstore, consignment invoices are generated and must be paid by the 15th of
the month. Chelsea Greens minimum consignment order is five books, any combination of
titles; the discount is 45 percent plus free freight. Titles that show little or no movement after an
agreed-upon time become candidates for shared markdowns. At the end of the initial
consignment agreement, which is for a six-month trial, the bookstore and Chelsea Green review
and evaluate the program. In the recent experiments in consignment, ABA CEO Oren Teicher
said, We think its extremely encouraging that publishers are taking a fresh look at trade
practices and asking themselves whether there are potentially profitable new ideas to be
explored. In our discussions with publishers, ABA has encouraged them to examine such new
avenues as consignment, which we believe have the strong potential of selling more books, a
definite win-win for publishers and booksellers. The consignment model is going to become
very common very quickly, said Chartrand, who is in talks with other publishers about
establishing similar partnerships. It addresses such an important, fundamental issue for
independent booksellers, which is cash flow. I am having discussions with two other publishers
to implement consignment deals, said Morrow. I hope to have half a dozen partnerships
worked out by next year. It is time for the industry as a whole to give consignment a fresh look.
27
In the Writers Weekly, Hoy (2011) said that an increasingly popular scenario is when a
bookstore buys the books on consignment. Under consignment, the bookstore doesnt pay for the
books until/unless they sell. Bookstores literally have nothing to lose (they dont even have to
pay anything up front) and authors are getting their books into local stores. Many of these
authors get their books stocked on the local author shelves at their neighborhood bookstores
and can even get their books on the front counter, depending on how well they promote
themselves to the stores owner or manager. Of course, consignment works for many different
types of retailers, not just bookstores. Some authors simply stop in once a month, check to see
how many books are left on display, and invoice the store for the books that have sold. Other
authors are kept abreast of sales by the store manager, and receive checks on a regular basis. Of
course, this would only happen with a very small store. The large stores have too much red tape
in their accounting departments for the store manager or a clerk to track sales of specific items.
The downside of a consignment contract is books can get damaged by customers thumbing
through them, and are sometimes damaged to the point where they are unsellable. So, if the
author must collect unsold books at some point to sell elsewhere, they may not be fit to sell.
Occasionally, an author gets stiffed by a store on a consignment deal so the recommendation is
by only dropping off a handful of books, not an entire case. Offering a consignment deal to the
store will probably give the best chance of having carry it. Simply offer to sell it on a
consignment basis, and check in every month or two to see if any have sold. Bill them for any
copies that are no longer on the shelf. The appeal to a store owner or manager is that they need to
take almost no action, and spend no up-front money, to get the books on their shelf. The easier
this transaction is for them, the better chance of the books being stocked by the store. When
delivering the books, two copies of a consignment agreement must be brought. The agreement
28
should contain a clause that specifies the bookstore will pay you for all copies that no longer
appear on their shelf. Otherwise, they could claim copies were stolen, and not pay for those.
They could also claim copies were damaged and discarded, and try to not pay for those.
Anything that happens in that store to your books is not, and should not, be the suppliers
responsibility.
Local Studies
In the study of Javier et. al (2010), in a duopolistic market where goods are consigned
under a Vendor Managed Inventory setting, the two manufacturers engage in a price competition
to capture the larger percentage of the market. Since they are able to dictate the market price of
their goods, the retailer is not in any way able to change the prices set by the respective suppliers.
When this happens, the retailer acts as a mere selling space of goods and point of competition
among suppliers. The intensity of competition is investigated where price competition with the
consideration of brand substitution is analyzed with respect to the decisions that are made by
each manufacturer. In considering the possible action and reaction scenarios that could take place
across different inventory cycles, significant factor interactions are identified and analyzed as to
how it affects mean profit and pricing and reorder decisions available to the manufacturer. As
manufacturer make discounting decisions in terms of price and time of discount, and reorder
point quantities across time, the optimal decisions as well as its sequence of implementation can
be viewed as sequential decision process that can be modeled as a Dynamic Programming
model. Competitive measures as well as eventual counteractions by competitors were simulated,
similar to how other studies considered action-and-reaction of players in the competition.
In another study of Salvador et. al (2010), their studys results revealed that the existing
accounting systems of their selected school for cash receipts and disbursements, receivable, and
29
revenues were all unsatisfactory while the debts and expenditures needed improvement. The
internal control system installed on accounting system for cash receipts and disbursement and
debt also needed improvement. The internal control for revenue was outstanding and
unsatisfactory for expenditure. The existing system for cash managements on its cash receipts
and disbursements both needed improvement while in the receivable; petty cash fund, debts, and
expenditure were all unsatisfactory. The existing system for revenue was satisfactory. The
internal control system particularly on cash receipts, receivable, debts, revenue, and expenditures
needed improvement. The internal control for cash disbursements and petty cash fund were both
unsatisfactory. The existing system for management on its cash receipts, cash disbursements,
receivable, debt, revenue and expenditure were assessed to be the strength in the current existing
practices on fund and revenue management of the school. The internal controls system installed
on fund and revenue management system particularly on cash receipts, disbursement, petty cash
fund, receivable, debt, revenue, and expenditure were also considered as the strength of the
institutions current controls practices on fund and revenue management systems. In addition, the
following were found to be the adoptable practices of related school to enhance the current
system about Fund and Revenue Management System: imprest system for cash receipts and
disbursement; concentration banking to fasten the collection scheme; the credit function of the
institution separated from the revenue function; establishment of adequate allowance for
probable losses from delinquent accounts; write-off of delinquent accounts thru approval by the
Board of Trustees; procedures of probable future collection from written off accounts; prenumbered documents used for billing; written procedures regarding the recording and
reconciliation of revenue generating transactions; procedures to ensure that fees billed are
adequate to recover all direct and indirect costs; the person responsible to the account/notes
30
receivable is independent from the credit manager; preparation of cash budget that begins at least
six months before the beginning of the next fiscal/calendar year; preparation of the budget that
involved all the individuals affiliated with the institution; paid invoices that are stamped PAID
to prevent the duplicate payment.
In another study of Abacahinet. al (2012), they have researched about the Edmar Marketing
which is currently does its sales and inventory manually. As such, it takes time to locate certain
files for reports and the entries in the monitoring sheet are not clear, thus, creating confusion.
The project is an automated Sales and Inventory System which has an array of functions
involving sales and inventory that can be of very big help to the company. It aims to make files
updated and easy to locate, hence, data and information become accurate and orderly which may
provide a faster alternative or means in doing the inventory. The system inventory may also be
harder to cheat because the coming in and going out of stocks are recorded in the system. The
warehouse personnel is more accurate in their reports and can save more time by using the
system. Since the system user has saved time, the personnel in-charge can then be more
productive in terms of output which can be beneficial to the company.
Diva and Trinidad (2011) conducted a study to enhance the existing pharmacy inventory
control system of Malijan Diabetes Center (MDC) to have a better inventory management and to
reduce risks of errors and fraud. It sought to identify the enhancement and design that MDC
could adopt for a more effective and efficient inventory system. Specifically, the study aimed to
determine the current policies and procedures of MDC to account for their pharmacy inventory;
verify strengths and weaknesses of the current inventory control system, provide appropriate
measures to be adopted to minimize risks from the weaknesses and threats; and identify
inventory management and accounting concepts, principles, and techniques that should be
31
applied to the enhanced inventory control system. The study used descriptive research design.
Interview with employees was conducted and internal control questionnaire was given to the
clients to gather the needed data. Finally, observations, walkthrough, and nonparticipant were
conducted to verify the results of the interview and questionnaire. Results revealed weaknesses
of the current system through SWOT analysis. Therefore, the study proposed different methods
from accounting and management concepts to reduce the threats from these weaknesses. The
analysis was suggested as a method of classifying the inventory of the pharmacy. Moreover, the
perpetual inventory system was suggested to avoid expensive periodic inventory counts.
Furthermore, the use of different accounting forms like Purchase Management, Purchase Order,
and Receiving Report as well as close supervision were recommended to reduce the weaknesses
found in the pharmacys current inventory system.
In the study of Picazo (2012), unlike Botikang Barangay which are supplied solely by
Philippine International Trading Corporation, and must pay for every delivery they receive. The
Generics Pharmacy does consignment for each franchisees, which can also get medicines from
other sources. Under consignment, the supplier (consignor) provides an inventory of drugs to a
retailer which pays only the items that is able to sell. This is an important distinction between
BNBs and For-profit franchisees which confers on the latter a distinct advantage. The Generics
Pharmacy also tends to advertise more, thus attracting more customers.
Foreign Studies
Xiu (2011) studied that many researchers have recently given considerable attention to
coordinating the issue between suppliers and retailers in the supply chain. However, most
researchers assume that the chains market demand is either price sensitive or constant.
Consequently, this work considers coordinating a single supplier-single retailer distribution
32
system. Consignment inventory is a mechanism of supply chain management. Adopting

consignment arrangement companies can dramatically lower company costs and drop prices to
increase demand for products, attract new customers and even enter new markets. A consignment
arrangement makes no payments to the retailer until the item is sold; therefore the retailer has no
money tied up in inventory and bears no risk associated with demand uncertainty. The supplier
possesses market condition information directly, mitigating bullwhip effect in the supply chain.
This increases firms measurement accuracy of the retailers selling efforts, reducing demand
uncertainty, and enabling the supplier to better match supply with demand.
In the study of Han (2013), consignment stores are, locations where consigners give
their gently used itemsless than three years and in good conditions, and other parties
purchase those consigned items. If the items are sold within 90 days, some percentage of sales
profits are taken by the store, and the rest of money go to consigners. If the items are not sold
during the period, items are returned to consigners or marked down. As defined here,
consignment applies two types of peopleconsigners and customers. Consignment store owners
not only make efforts to maintain good relationships with customers, they also maintain
relationships with consigners. They are both important, since consigners are people who bring
quality items, and customers are people who purchase these items, and finally produce profits.
The store deals with items that have brand quality, wearable, in good condition, and less than 2-3
years old. Although consignment store owners have also the freedom to choose their items like
vintage store owners, sometimes their choices are limited to only what consigners bring to the
store. They also provide quality services to community, consigners, and customers, offering
entertainment and esthetic experiences.
33
In another study of Ramrakhyani (2010) Supplier, Buyer and Retailer are the three most
important aspect of a Supply Chain with inventory as the common link connecting the three.
Since the advent of Supply Chain Management System, researchers are involved eradicating the
problems incurred in the smooth functioning of the supply chain system and are exploring ways
to increase the overall profitability of the system. VMI (Vendor Managed Inventory) System with
CI (Consignment Inventory) offers a solution for many manufacturing businesses. In this
research work the focus is made on both the type of inventory management agreement systems.
To gather information an empirical study was done at Marquardt Switches Inc. and interviews
were conducted with the Production and Supply Chain Engineers. Extended Literature review
was done to know the latest updates in the field of study. This research was more focused on
studying different Inventory Supply Chain Models and compares the profit function of Supplier
and Buyer working in a VMI-CI environment and to show the profitability of the overall Supply
Chain Management System in a Manufacturing Industry. More work was carried out to extend
the study done on "Supply Chain Model of Vendor Managed Inventory" [Dong and Xu, 2002] by
incorporating the mathematical model with the benefits associated with 'Payment Delays' and
'Time Value of Money' in the VMI System.
As cited in the study of Gilde (2014), another use of the VMI is to include consignment
inventory policy. There has over the past decades been an increasing amount of researcher that
has started to concern the importance related to profitable vertical relationships between seller
and buyer. From before and little back in time companys where working in short terms
perspective if we compared it with the normality of today. The most important factor was price
and how there was possible to reduce the price on articles to get the cost down. Today there are
more focus towards strong integration, collaboration and information sharing between both
34
parties to make profit, and be able to reduce cost so everybody gain profit, and also leaning
towards strong relationship with fewer and more strategic suppliers. (Valentini and Zavanella
2003) Consignment stock will in this case assume it will work under the assumption that the
vendor will increase the service level on the warehouse for seller according to an optimal service
level and to reduce the probability of a stock-out situation. Recent studies show that there can
be a lot of advantages of using VMI with consignment stock policy, so there are made a list of
advantages and disadvantages considering the 17 possible implementation of VMI policy with
CS, trying to highlight some important factors to be aware of.
According to the study of Verheijen (2010) in general, the central idea is that total
channel costs for Vendor Managed Inventory-consignment in a supply chain channel between a
buyer and vendor decrease over both the short and long term, but such a decrease may fall short
of the centrally coordinated supply chain (Dong and Xu, 2002). In the Dong and Xu study, VMIconsignment arrangement is compared to a base case in which the buyer dominates and
determines the order quantities and a proposed transfer price according to local profit
maximization. The benefits of VMI increase with increasing difference between the vendors and
the buyers setup costs for a transaction and thus their preferred order-sizes. Evidently,
implementation of VMI with consignment is always beneficial to the buyer as the inventory
holding costs are absorbed by the vendor. However, when the transaction setup costs for the
buyer and vendor are of the same magnitude, it is possible that implementation of VMIconsignment leads to a decrease of the vendors profits in the short term. In the long-term,
however, reduction in overall supply chain channel costs results in a competitive edge, leading to
increasing sales volumes, so the vendors profits could increase. A special assumption in the
Dong and Xu study is that the production costs increase convexly in quantity. Note that other
35
efficiency gains attributed to VMI such as improved coordination and forecasting, leading to
reduced safety stocks and more degrees of freedom for vendor to manufacture or deliver
have not been taken into account in this study.
Relevance to the Present Study

The head part of this chapter deeply explains the system of consignment which is also
known as indirect selling. The Principal-Agent Relationship or indirect selling definition and
how they function is shown thoroughly. Deferred basis of payment is effective for this system
where the payment is dependent on the third party as commission will be given to the consignee.
In a bookstore and publisher relationship where the bookstore is the consignee and the publisher
is the consignor. Furthermore, it is said that consignment system is the best for meeting the
increasing demand by the market for the benefit of the involving parties (supplier, buyer, and
vendor). Also, it offers operational improvements such as cost saving, decrease in labor costs,
production times, and administrative expenses as equated fir a higher profit. Consignment deals
work for many different types of retailers, not just bookstores and it becomes so much common
very quickly. These discussions are relevant to the study specifically in accounting relations and
internal controls. Thus, the rules, agreements, and step-by-step system, and possible scenarios
between the two related parties are also stated. The AIS relations come in pace in settling bar
codes on a certain inventory like books. It helps the consignment to be easier, systematic, and les
error-occurring.
The chapter also discusses the risks may be encountered by the suppliers and retailers. It
is said that the scenario determine who will take a higher risks. On the market, the risks include
36
the price competition as it affects the mean profit, pricing, and reorder decisions for the
manufacturer.
CHAPTER III
Method and Procedure
Research Design
The study made use of quantitative, descriptive approach to investigate the adherence of
selected university bookstores. It was quantitative since it was concerned with the numbers and
frequencies with which the level of adherence of the bookstores to the prescribed consignment
practices can be measured. The response given by the representatives of selected university
bookstores represented that of the population.
The data obtained were used as information about the selected university bookstores
consignment practices. As planned, one way of extending knowledge about selected university
bookstores that employ consignment was to observe and evaluate them. At the end of the
research, the results were communicated to the management of the selected university
bookstores.
Since sampling of the population was used, the results of the study were assumed as
describing the population of interest (all university bookstores around the Philippines that
employ consignment). The sample used was also assumed as representative bookstores of all
bookstores around NCR region in terms of their consignment practices.
37
Sample and Sampling Technique

The respondents of the study were the selected personnel of selected university
bookstores as they are the ones overseeing the consignment practices. They have enough
knowledge for their being positioned in the organizational structure. Selected university
bookstores and their representatives were assumed as one and only one entity. Meaning, the
opinions given by the respondents reflected that of the selected university bookstores.
The population is all university bookstores in the whole Philippines that employ
consignment. According to Commission on Higher Education (2015), there are 2, 180
universities in the Philippines. Some universities do not have bookstore at all. Some have but not
operated by the university itself, and some have operated by cooperatives. The focus of this
research is for those owned by the university through the finance department. With its wide
scope, population was narrowed down using the following criteria, as purposive sampling was
used: (1) the university should be located within NCR area, (2) the bookstore should be owned
and operated by the university, (3) the student population must be at least 10,000 for the current
school year, and (4) the personnel (as representative) should have knowledge on both accounting
procedure and internal control of the university bookstores consignment practices. The number
of respondents who qualify for the criteria given is ten (10) from ten different universities. Here
is the list of universities who qualify:
Name of School
Address
Far Eastern
University
University of the
East
Lyceum of the
Philippines
Recto Ave, 395, Manila, 1008

Metro Manila
2219 Recto Ave, Sampaloc,
Manila, 1008 Metro Manila
Muralla St, Intramuros,
Years of
Operation
(Bookstore
)
1-5 years
1-5 years
6-10 years
Enrollees as of
date of
sampling
38
University of the
Asia and the
Pacific
Philippine
Womens
University
Arellano
University
De La Salle
University
Adamson
University
University of the
Philippines
Pearl Dr, San Antonio, Pasig,

1600 Metro Manila
6-10 years
Taft Ave, Malate, Metro

6-10 years
2600 Legarda
Street,Sampaloc
1008,Manila, Sampaloc,
Manila, Metro Manila
2401 Taft Ave, Malate,
900,San Marcelino
Street,Ermita,Manila City
1000,Metro Manila
Diliman, Quezon City
1101,Metro Manila
6-10 years
11 years
and above
11 years
and above
11 years
and above
Table 1. List of universities that met the criteria of the researchers
Research Instrument and Technique

Since the study used descriptive method, survey type of research, questionnaire was
utilized as a tool for gathering data. The questionnaire is entitled Prescribed Consignment
Practices Questionnaire. It is an adapted questionnaire using different standards and
pronouncements about consignment accounting procedure and internal control.
Standards and pronouncements that were used as sources includes: International
Accounting Standards 18-Revenue Recognition, KPMG Internal Control Practical Guide, COSO
Internal Control Framework, University of Muscogee Bookstore policies and Procedures; LBMA
(London Bullion Market Association) Consignment Agreement Draft, LegalZoom Consignment
Agreement, Guide and Sample General Agreement, and Advanced Accounting Two by Baysa
and Lupisan.
In the context of the study, the researchers focused on determining the level of adherence
on the prescribed consignment practices of selected university bookstores. The tool consisted of
eight parts; one for the demographics and seven for the consignment practices with five
39
questions for each from a combination of accounting procedure and internal control provisions.
The distribution of question for the two was distributive.
The research problem as stated in the Statement of the Problem of the paper was
answered systematically as to the design of the questionnaire. The first part of the questionnaire
represented the first specific problem, What is the profile of selected university bookstores in
terms of years of operation? The second part of the questionnaire represented the second
specific problem, What is the level of adherence of selected university bookstores to the
prescribed consignment practices: (a) delivery of goods; (b) risk of loss, damages and
confusions; (c) efforts to sell; (d) payment, sales and commission; (e) return of products; (f)
termination; and (g) legal items? The third and fourth specific problems were not directly
represented by the questionnaire, but rather answered using statistical methods.
Data Gathering Procedure
Contact all
university in NCR
for bookstore
consignment
verification
Contact selected
university
bookstores for
more information
inquiries
Construct the
questionnaire
Do questionnaire
distribution
Give permission
to conduct study
to selected
univeristy
bookstores
Do the validation
and reliability
testing
Collect and
tabulate results
(descriptive
analyses)
Do inferential
statistical
analyses
Figure 2. Data gathering procedure flow diagram
40
From the population, all selected university bookstores in the whole Philippines that employ
consignment, selected respondents were segregated using the criteria laid down. First, all
universities in NCR (from a pool form all over the Philippines) were contacted one-by-one. The
following queries were asked: (1) is there a bookstore inside the campus, that is owned and
operated by the university, just like an extension of the Finance department and (2) is the
bookstore employing consignment? From these, those universities having bookstores that
employ consignment were segregated.
From those segregated, the researchers contacted the selected universities, through email
or phone call to send permission and request to disseminate enrollment information. After the
receipt of information, those having student population of at least 10,000 for the current year,
were further segregated.
From those segregated, the researchers contact the selected universities finance, through
email or phone call to send permission and request to conduct study and choose a personnel as a
representative of the university. Those personnel who have enough knowledge about the
accounting procedure and internal control for consignment practices were segregated. It is the
head of the finance department that decides who will be selected (it can be the Finance head
also). Selected personnel will be the respondent and representative of the university bookstore.
The survey was adapted using standards and pronouncement for consignment accounting
procedures and internal control. The questionnaire was composed of thirty-five (35) questions,
which were detailed and more related to accounting procedures and internal control for the
consignment practices.
After the validation process, the researchers sent e-mails to selected universities finance
department for permission to conduct study. This was due to the reason that the head of the
41
finance department will be the one to choose the representative of the university needed for the
study. Once the feedback from the e-mail was accepted, with a permission to deliver the
questionnaires, the researchers distributed the questionnaires to the respective universities
offices. Answering of the questionnaire was supported by direct observation and interview. Every
time a questionnaire was completed, tabulation of points was done. Results obtained remained
confidential to the researchers themselves. The next step did not start until all the questionnaires
were retrieved.
Next, statistical computations were made to test the hypothesis. Mean, standard
deviation, and coefficient of variation were computed to determine the level of compliance of the
bookstores to the prescribed consignment practices. Kruskall-Wallis H test was utilized in
identifying significant difference between the responses when the respondents were grouped to
years of operation.
Validation of the Questionnaire
The questionnaire was validated by two CPAs who are now auditors and one CPALawyer practicing law. They give credibility to the questionnaire, validating that what is included
in the questionnaire is prescribed by the Philippine retailing and consigning business laws and
different promulgations and issuances from authorized accounting standard bodies including
their firm of profession. They give assurance that this questionnaire can serve as foundation of
prescribed consignment practices in the Philippines, and attest that general accounting and
internal control procedures are all included in the statistical tool.
It is further validated by a competent and independent lawyer. He makes sure that what is
included in the questionnaire is prescribed from his thorough investigation of the related laws.
Attorneys validation can be seen in the Appendices section of the paper.
42
Reliability of the Questionnaire

The statistical tool used was tested for reliability using Cronbachs Alpha as indicator of
reliability. The samples used qualify for the criteria to be also given for the actual respondents.
The samples came from university bookstores from five universities in the Cavite Area.
The same data gathering procedure was used to treat the data obtained. Lastly, a college
full-time professor and statistician, in the name of Mr. Hadji C. Alegre, certified that the
instrument used was reliable with a Cronbachs Alpha of 0.916.
Statistical Treatment of Data
Results from the first part of the questionnaire were tallied together in a frequency table
used to create charts. Results from the second part of the questionnaire were tallied together by
category. For each statement item, the following were the pointing system:
Point
Point Range
Adjectival
Description
Interpretation
2.51-3.00
Always
practiced
Adhere
1.50-2.49
Sometimes
practiced
Adhere with
limitations
1.00-1.49
Not practiced
Not adhere
Table 2.Pointing system to be used to measure adherence
Descriptive Analysis
The data gathered were subjected to different statistical tools accordingly. The profiles of
the respondents were illustrated in the frequency and percentage of respondents profile with the
format as follows:
43
Gender
Male
Female
Total
Frequency (f)
X
z-x
Z
Percentage (%)
y
100-y
100
Table 3. Table format for illustrating frequency and percentage of respondents profile.
Mean, standard deviation, and coefficient of variation were computed to determine the
level of adherence on the prescribed consignment practices of each of the sample for every
category. From thirty-five (35) questions, mean was computed for every statement and every
category of consignment practices, and the result served as level of adherence of the sample to
the prescribed consignment practices. Each analysis was presented in a tabular form.
Standard deviation were used to measure how each response is closer or farther from the
mean and how groups of response were scattered or compacted around the mean.
Inferential Statistics
Statistical computations were made to relate the results thereon. Each analysis was
presented in a tabular form and the asymptotic value was obtained from each table in each statement
to determine if the hypothesis was accepted or rejected which determined the significance of this
research. Kruskall-Wallis H test was used to test difference in all the consignment practices
categories.
Kruskall-Wallis H Test
The Kruskall-Wallis H test (sometimes also called the "one-way ANOVA on ranks") is a
rank-based nonparametric test that can be used to determine if there are statistically significant
differences between two or more groups of an independent variable on a continuous or ordinal
dependent variable. In the context of the study, years of operation were divided into three
categories or groups: 1-5, 6-10, and 11 years and above. The non-parametric test used is
Kruskall-Wallis where the Chi Square and asymptotic significance value (below 0.05)
44
determines the acceptance and rejection of hypothesis. The researchers made use of software
IBM SPSS Statistics 22 to generate the statistical results of the gathered data.
CHAPTER IV
Presentation, Analysis and Interpretation of Data
1. Profile of the Respondents

1.1 Years of Operation
Table 4 illustrates the frequency and percentage of the respondents profile in
terms of years of operation.
Table 4
Frequency and Percentage Distribution of the Respondents Profile According to Years of
Operation
Years of Operation
1-5 years
6-10 years
11-15 years
Total
Frequency (f)
2
4
4
10
Percentage (%)
20
40
40
100
The above table shows that 2 of the respondents or twenty percent (20%) have been
operating for 1-5 years, four (4) of the respondents or forty percent (40%) have been operating
for 6-10 years. While four (4) of the respondents or forty percent (40%) have been operating for
11-15 years.
45
The said findings are an expected distribution since most of the universities that part of
the sample have only recently established their operation due to recent increase in student
population that positively agreed to the need of a bookstore.
2. Level of Adherence on the Prescribed Consignment Practices of University Bookstores
2.1 Delivery of goods
Table 5 shows the mean, standard deviation, adjectival description, and interpretation of
the level of adherence on the prescribed delivery of goods practices of university bookstores.
Table 5
Level of Adherence on the Prescribed Delivery of Goods Practices of University Bookstores
Prescribed Delivery of Goods
Practices
1. The bookstore labels consigned
books with an identification tag (e.g.,
serial number, codes, colored tag)
when such books are received.
2. The bookstore records all
delivery costs shouldered by
the consignee. (A debit to
Receivable from Consignor
and a credit to Cash are
recorded).
3. The bookstore records a
memorandum entry (e.g. A receipt of
100 units of books consigned are
received on January 1, 2016) and the
title of products still remains with the
consignor.
4. The bookstore receives the
initial list prices together after
examining appropriate terms.
5. The bookstore properly
stocks delivered books in a
central stockroom or inside
the bookstore premises.
Composite Mean
Mean
SD
Adjectival
Description
Interpretation
2.80
0.42
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
3.00
0.00
Always
practiced
Adhere
2.70
0.48
Always
practiced
Adhere
2.70
0.48
Always
practiced
Adhere
2.82
0.20
Always
practiced
Adhere
46
Legend: 1.00-1.49 Not Adhere; 1.50-2.49 Adhere with limitations; 2.50-3.00 Adhere
The highest mean was obtained by the third statement The bookstore records a
memorandum entry (e.g. A receipt of 100 units of books consigned are received on January 1,
2016) and the title of products still remains with the consignor with mean and standard
deviation of 3.00 and 0.00, respectively. On the other hand, the lowest mean was obtained by the
fourth and fifth statements The bookstore receives the initial list prices together after examining
appropriate terms and The bookstore properly stocks delivered books in a central stockroom or
inside the bookstore premises with means and standard deviation of 2.70 and 0.48, for both. In
overall, the bookstores sampled always practiced the delivery of good practices, meaning they
adhere.
According to Kieso et al. (2011) the shipment of consigned merchandise to the consignee
does not make the consignee responsible to make an entry on its books. Rather he/she should
make a memorandum entry of merchandise received. The accounting cycle starts from
identifying and recording transactions that might affect the financial statements and journalizing
them. A reliable accounting information system is a necessity for all types of business. Thus, it is
expected for the bookstores to always practice accounting procedure practices. It is evident in the
results that accounting procedure of entering a memorandum entry, not journal entry, is adhered
by the bookstores sampled and the proper recording of delivery cost as shouldered by the
consignee as receivable to consignor.
On the other hand, internal control practices ensure that proper recordation of procedures
for financial reporting is achieved. In general, it protects the accounting system in two ways:
prevention and detection. It is good to know that bookstores sampled are always practicing these
controls. Meaning, prevention and detection is in place for their operations. They adhere to what
47
are prescribed. The first statement is a preventive one. Proper labelling is like proper labelling of
source documents as future audit trail. Recording to books as identified using labels prevents
confusion and double counting and identify what are the obligations and what are the resources
from whom. Receipt of list prices is an internal control for sales. Goods are provided at
authorized prices. This is a preventive one to avoid certain sales at unauthorized prices. The last
statement is an internal control for inventory. Bookstores also practice what is also stated by
Retail Minded (2010) that by keeping your stockroom neatly organized, your store will be more
productive in replenishing merchandise, locating products in the back while customers are
waiting and keeping products from getting misplaced or damaged.
Therefore, it is be concluded and expected that bookstores sampled have its receipt of
goods from the consignor up to the proper stocking of these books to the stockroom running
smoothly. Accounting procedures and internal controls were always in placed that help the
business in achieving a well-established accounting information system for delivery of goods
that adheres to what are prescribed.
2.2 Risk of Loss, Damages and Confusions
the level of adherence on the prescribed risk of loss, damages and confusions practices of
university bookstores.
Table 6
Level of Adherence on the Prescribed Risk of Loss, Damages and Confusions Practices of
University Bookstores
Prescribed Risk of Loss, Damages
and Confusions Practices
1. The books are checked and
examined for visible signs and
concealed damages or loss, and if
discovered, it is reported immediately
Mean
SD
2.70
0.67
Adjectival
Description
Always
practiced
Interpretation
Adhere
48
to the consignor.
2. The bookstore records loss and
damages so long as it is the
negligence of the bookstore. (A Debit
to appropriate expense account and a
Credit to cash)
3. The bookstore insures the books
against all risks against which are
customarily
insured,
including
insurance for theft and damage, and
provides evidence of such insurance
coverage to the consignor as and
when requested.
4. The bookstore makes sure to meet
certain standards in keeping the
books, such as their segregation from
goods wholly owned or held under a
claim of ownership or interest.
5. The bookstore maintains an
accurate physical inventory log
records of consigned books delivered
after examining the books.
Composite Mean
2.90
0.32
Always
practiced
Adhere
2.10
0.88
Sometimes
practiced
Adhere with
limitations
2.50
0.85
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
Always
Adhere
practiced
2.62
0.43
The highest mean was obtained by the second and fifth statements The bookstore records loss
and damages so long as it is the negligence of the bookstore. (A Debit to appropriate expense
account and a Credit to cash) and The bookstore maintains an accurate physical inventory log
records of consigned books delivered after examining the books with means and standard
deviations of 2.90 and 0.32, for both. On the other hand, the lowest mean was obtained by the
third statement The bookstore insures the books against all risks against which are customarily
insured, including insurance for theft and damage, and provides evidence of such insurance
coverage to the consignor as and when requested with mean and standard deviation of 2.10 and
0.88, respectively. In overall, the bookstores sampled always practiced the risk of loss, damages,
and confusions practices except the third statement, insuring books.
49
The second statement is an accounting procedure. It is evident as expected for this item to
always be practiced and adhered; it has the highest mean among all the items in the category.
According to Contemporary Office Interior (2010), a proper inventory is carefully inspecting all
goods for completeness, visible and concealed damage, and conformance to specifications at
interim and/or year-end period. The bookstores sampled have a good inventory management. The
first and fifth statements are also related to what is stated in the article by Contemporary Office
Interior; they are always practicing these prescribed practices. Checking of goods for visible
signs of concealed damages were always practiced by bookstores sampled. They adhere to what
is prescribed and what is stated in Contemporary Office Interior. Maintaining an accurate
physical inventory log records helps the management for ease of reconciliation of goods
received, sold and those remaining for completeness and conformance to specifications at the
end of the period. In addition, Simple Studies (2015) in an article pertaining to consignees
internal control for consigned inventory stated that consigned inventory should be physically
segregated from other inventory. Bookstores sampled always practiced segregating books
consigned; this means they adhere. This prevents confusions between wholly-owned from those
consigned. This also prevents mixing of counts and valuation for certain inventory items in the
central stockroom.
On the other hand, the third statement which is sometimes practiced by bookstores sampled
pertains to insurance of goods received as consigned. The said findings are also true with the
study of American Booksellers Association (ABA) (2010) stating that not all independent and
higher education institution-owned bookstores are insuring their books, instead they compensate
this by implementing more risk policies. But as prescribed it is needed to be adhered for the
benefit of all concerned. According to Ennia (2010), a smart entrepreneur makes sure his or her
50
inventory and goods are properly insured. This way a company can quickly get back on its feet,
after a fire for example, without losing any clients. This is supported by the statement of Simple
Studies (2015) that insurance of consigned inventories is a must. The insurance can be covered
by the consignor or the consignee or any third parties, but the stipulation of not giving insurance
should not be the case.
Therefore, in general, it is concluded and expected that bookstores sampled have its loss,
damages and confusions properly managed. Accounting procedures and internal controls were
always in placed that help the business in achieving a well-established risk of loss, damages and
confusions practices that adheres to what is prescribed. However, always practicing insuring
goods will strengthen more the foundation of damages, confusions and especially loss policies of
the bookstore.
2.3 Efforts to Sell
the level of adherence on the prescribed efforts to sell practices of university bookstores.
Table 7
Level of Adherence on the Prescribed Efforts to Sell Practices of University Bookstores
Prescribed Efforts to Sell Practices
1. The bookstore entices student
demand for the book by proper
positioning and displaying of books.
2. The bookstore records the
advertising expenses incurred. (A
Debit to Receivable from Consignor
and a Credit to Cash)
3. The bookstore is implementing
copyright infringement violation
rules.
4. The bookstore agrees with the
consignors price that is justifiable
Mean
SD
Adjectival
Description
Interpretation
2.50
0.53
Always
practiced
Adhere
1.90
0.74
Sometimes
practiced
Adhere with
limitations
2.30
0.82
Sometimes
practiced
Adhere with
limitations
2.80
0.42
Always
practiced
Adhere
51
enough to have a high demand for the

product for assurance of high volume
sales.
5. The bookstore staff has an oral
tradition of promoting the books and
courtesy to the students.
Composite Mean
2.60
0.52
Always
practiced
Adhere
Sometimes
Adhere with
practiced
limitations
2.42
0.26
The highest mean was obtained by the fourth statement The bookstore agrees with the
consignors price that is justifiable enough to have a high demand for the product for assurance
of high volume sales with mean and standard deviation of 2.80 and 0.42, respectively. On the
other hand, the lowest mean was obtained by the second statement The bookstore records the
advertising expenses incurred. (A Debit to Receivable from Consignor and a Credit to Cash)
with mean and standard deviation of 1.90 and 0.74, respectively. In overall, all of the practices
above are sometimes practiced by the bookstores sampled. Meaning they adhere but with
limitations. The said findings are supported by an article written by Silverberg and Glover (2014)
stating that campus bookstore nowadays were reporting decline in sales, and the old generation
problem lies with the traditional campus bookstore setting. A decline in demand of prospective
buyers results to a decline in sales. Silverberg and Glover (2014) therefore recommend having a
new generation campus store where not just pieces of paper are present. This will improve
placing of items and develop an oral tradition among campus students. As we look individually,
we can see how accounting and internal-control related practices were adhered differently by the
bookstores.
For the first statement, it is a marketing strategy to improve sales of the books consigned.
Bookstores sampled always practice proper positioning and displaying to entice buyers which
mean they adhere to this practice. This is an effective marketing strategy and at the same time
52
directive control in order to increase its sales. According to Cavanaugh (2012), marketing control
is a type of directive control.
The second statement with the lowest mean that is expected to be always practiced by the
bookstore since it is an accounting related practice. According to Kieso et al. (2011) payment of
advertising by the consignee is receivable to consignor. Recording advertising expenses incurred
should be properly recorded for faithful representation and documents related to it should be kept
as evidence that records are in fact accurate. But the results shows that bookstores sampled
sometimes practice this specific practice of recording advertising expenses, meaning they adhere
but with limitations. The source of limitation came from the recordation of advertising, when
immaterial, as other expense or advertising expense of the consignee. A credit to expense and
debit to receivable was done as correcting entry at the end of the period that makes journal
entries a little bit confusing and not consistent from period to period. For the third statement, it
shows also that the practice for implementing copyright infringement violation rules is
sometimes practiced by the bookstores sampled. According to National Association College
Stores (NACS) (2010), copyright infringement violation policies should be implemented to set
forth indirect increase in sales from students choice of buying from authorized stores.
The fourth statement, which is concerned for the price agreed in order to sell the books
consigned, shows that it is always practiced meaning bookstore sampled adhere to this practice
since it is an accounting procedure- related practice (esp. cost accounting). The bookstore use
their correct judgment in agreeing if the prices offered by the consignor would be justifiable for
the students in order to sell the books consigned. A cost volume profit and break-even point
analysis are always done by bookstores in this item. Unjustifiable prices of books may lead to
not selling the books consigned due to increase in demand, since the buyers may not have the
53
capability to buy. For the last statement, promotion and courtesy to buyers it is more focus on the
bookstore employees skills. It shows always practiced that would mean the bookstore sampled
adhered showing that the employees have established good communication skills for promotion
and courtesy to buyers that would also be an effective efforts to sell practice to improve sales.
Therefore, it can be concluded and expected that bookstores sampled have their efforts to
sell practices to be ineffective. Accounting and internal control practices were sometimes in
placed. This should not be the case. In order to achieve well-established efforts to sell practices,
they should always practice what are prescribed. In this sense, they adhere. With that adherence,
they can have well-established efforts to sell practices. Therefore, in general, bookstores sampled
sometimes practiced practices in this category. Conversely, one of the lowest is an accounting
procedure-related practice. This should also not be the case. The bookstores sampled have weak
foundation of the financial reporting pertaining to efforts to sell. Even though this category is
focused on how the books consigned would be sold by the bookstore in an innovative way, they
should still follow proper accounting procedures in order to attain relevant and faithfully
represented financial information.
2.4 Payment, Sales and Commission
the level of adherence on the prescribed payment, sales and commissions of university
bookstores.
Table 8
Level of Adherence on the Prescribed Sales, Payment and Commission Practices of
University Bookstores
Prescribed Sales, Payment and
Commission Practices
Mean
SD
Adjectival
Description
Interpretation
54
1. The bookstore reconciles those

received from what is recorded at
least daily, unless weekly is more
efficient.
2. The bookstore remits proceeds of
sale of consigned books to the
consignor or to deposit them in a
special account on or before the
period agreement.
3. The bookstore records sales of
consigned books as a Debit to Cash
and a Credit to Payable to the
Consignor.
4. Notification of sale, expense and
remittance are recorded as Debit to
Payable to Consignor and a Credit to
Commission Income and Cash.
5. The bookstore with the consignor
stipulates proper agreement of
commission rate putting into
consideration, improvement of Sales
as determinant of commission rate.
Composite Mean
3.00
0.00
Always
practiced
Adhere
2.80
0.42
Always
practiced
Adhere
3.00
0.00
Always
practiced
Adhere
3.00
0.00
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
Always
Adhere
practiced
2.94
0.13
The highest mean was obtained by the first, third, and fourth statement The bookstore
reconciles those received from what is recorded at least daily, unless weekly is more efficient,
The bookstore records sales of consigned books as a Debit to Cash and a Credit to Payable to
the Consignor and Notification of sale, expense and remittance are recorded as Debit to
Payable to Consignor and a Credit to Commission Income and Cash with means and standard
deviations of 3.00 and 0.00, for the three. On the other hand, the lowest mean was obtained by
the second statement The bookstore remits proceeds of sale of consigned books to the consignor
or to deposit them in a special account on or before the period agreement with mean and
standard deviation of 2.80 and 0.42, respectively. In overall, all of the practices above are always
practiced by the bookstores sampled. Meaning they adhere.
55
This finding is also true according to Athitakis (2012), stating that there is no problem
with the management of sales, payment and commission, but the emphasis lies with
experimenting ideas on how to manage them above existing. The third and fourth statements as
accounting related practices are evidently always practiced as expected by the bookstores. They
adhered to what is prescribed as described by Kieso et al. (2011) that accounting for consignment
can be illustrated that sales of consigned merchandise is recorded by a debit to Cash and credit to
Payable To Consignor. He further illustrated that notification of sales and expense are recorded
as debit to Payable To Consignor and credit to Receivable From Consignor (from advertising)
and Commission Revenue (commission stipulated) and Cash. On the same hand, the first
statement, about timely reconciliation of control accounts from supporting entries and documents
was always practiced by the bookstores, because this one is a hybrid of both accounting and
internal control-related practice. They adhere to this preventive practice. Bookstores sampled
have well-established policies in its operation.
Conversely, the last two statements are more susceptible of further experimentation. Than
other statements, although they already adhere to what are prescribed. Experimenting ideas
involve strategic consideration of commissions. With a constant increase in sales, an increase in
commission should be negotiated. This directive control will improve profit. An unchanging
commission rate is not a sign of a growing business (NACS, 2010). This stipulation needs to be
addressed to the consignor in return of increase sales; therefore, bookstores should improve
efforts to sell practices, as this constantly increases sales.
Another experimenting idea is
remitting proceeds as deposit to special account in a bank or any financial institution. This is by
its nature a directive internal control. This will help lessen cost of remittance and increase net
profit from consigning.
56
Therefore, it can be concluded and expected that bookstores sampled have its receipt of
sales up to the remittance and notice to consignor running smoothly. Accounting and internal
control practices were always in placed that help the business in achieving a well-established
accounting information system for payment, sales and commission that adheres to what are
prescribed. All university bookstores should follow these practices when it comes to sales,
payment and commission since these are the most important terms in the consignment agreement
and it involves money and profit that is why strict management over this category is a must to
avoid financial errors and inopportunity.
2.5 Return of Products

the level of adherence on the prescribed return of products practices of university bookstores.
Table 9
Level of Adherence on the Prescribed Return of Products Practices of University
Bookstores
Prescribed Return of Products
Practices
1. Defective books that are seen or
returned by the students are marked
by the bookstore as defective and
returned
to
the
consignor
immediately.
2. The bookstore with the consignor
properly agrees with period of return
and when will the unsold goods
automatically be returned.
memorandum entry when there is a
return of product. (e.g. 100 units of
books were returned to the consignor
due to incomplete pages on January
15, 2016)
4. The bookstore segregates books to
Mean
SD
Adjectival
Description
Interpretation
2.80
0.42
Always
practiced
Adhere
3.00
0.00
Always
practiced
Adhere
3.00
0.00
Always
practiced
Adhere
2.70
0.48
Always
Adhere
57
be returned properly identified and

counted before the date of actual
return.
5. The bookstore does not follow the
principle of No Return, No
Exchange policy.
Composite Mean
practiced
1.60
0.97
Sometimes
practiced
Adhere with
limitations
Always
Adhere
practiced
2.62
0.22
The highest mean was obtained by the second and third statement The bookstore records a
memorandum entry when there is a return of product. (e.g. 100 units of books were returned to
the consignor due to incomplete pages on January 15, 2016) and The bookstore segregates
books to be returned properly identified and counted before the date of actual return with means
and standard deviations of 3.00 and 0.00, for both. On the other hand, the lowest mean was
obtained by the fifth statement The bookstore does not follow the principle of No Return, No
Exchange policy with mean and standard deviation of 1.60 and 0.97, respectively. In overall,
all of the practices above are always practiced by the bookstores sampled. Meaning they adhere.
According to Kieso et al. (2011) in times of fixed return of merchandise form agreed
stipulated time with the consignor; the consignee should make a memorandum entry specifying
the amount and units to be returned. This is in accordance that merchandise receive was not
recorded as asset of the consignee from the beginning. The bookstores sampled always practiced
the third item, meaning they adhere. Why it is important to make this entry? This is an
accounting, and at the same time internal control for inventory. This is of great help during
reconciliation of those received, sold, return and those remaining at the end of the period. This
will also help the consignee to check if what is shipped to be returned is recorded before
shipping, to be presented as evidence to consignor in times of discrepancies issues. The second
statement is always practiced as expected by the bookstores sampled. They adhere to having
58
proper return period that was fundamental to be stipulated in the consignment agreement. This
will help prevent undue loss and damages expenses in times of undue custody of merchandise in
the hands of the consignee.
Meanwhile, the fourth statement is concerned with segregation and identification at the
end of period return point. Bookstores have been always establishing a segregation and
identification policy. Meaning they adhere. This time segregation and identification pertains
between those consigned goods to be returned and not to be returned. This will help prevent
confusions as this one is a preventive internal control.
On the other hand, Pursuant to the Implementing Rules and Regulations of R.A. 7394, or the
Consumer Act of the Philippines, specifically Title III, Chapter I, Rule 2, Section 7 of
Department Administrative Order (DAO) No. 2, series 1993, the words No Return, No
Exchange, or words to such effect shall not be written into the contract of sale, receipt or sales
transaction, in any document evidencing such sale or anywhere in the store or business
establishment. Bookstores sometimes practiced following this law. This should not be the case.
This should always be practiced. A law should be followed by any established business at all
times, forfeiture entails civil liability. However, the first statement, when it comes to marking
defective goods from those returned from customers (meaning they accept returns, but not
always) and those from normal detection of visible and concealed damages, bookstores sampled
adhere. They have been always establishing a good control to prevent confusions between those
defective from those not defective.
Therefore, in general, it can be concluded and expected that bookstores sampled have its
return of products properly managed. Accounting and internal control practices were always in
placed that help the business in achieving a well-established accounting information system for
59
return of products that adheres to what are prescribed. However, one of the lowest as sometimes
practiced is a law-related practice. This should not be the case. The bookstores sampled have
weak foundation of regulatory framework for business. As reiterated, law, policies and
procedures, and regulations are part of directive internal control practices.
2.6 Termination
the level of adherence on the prescribed termination practices of university bookstores.
Table 10
Level of Adherence on the Prescribed Termination Practices of University Bookstores
Prescribed Termination Practices
1. The bookstore returns all unsold
copies at the termination of
consignment period in the same
quality as it was delivered.
2. The bookstore follows the amount
of time given by the consignor to
return the books after the termination
of agreement.
memorandum entry for return of
unsold copies of books (e.g.
termination of contract with supplier
A. 120 unsold goods are returned and
allocated collection was remitted
January 31, 2016)
4. The bookstore, during termination,
segregates books to be returned
properly identified and counted
before the date of actual return.
5. The bookstore terminates the
contract with justifiably and that was
proof-based to who breaches the
contract.
Composite Mean
Mean
SD
Adjectival
Description
Interpretation
2.80
0.42
Always
practiced
Adhere
2.50
0.53
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
2.50
0.85
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
2.72
0.32
Always
practiced
Adhere
60
The highest mean was obtained by the third and fifth statement The bookstore records a
memorandum entry for return of unsold copies of books (e.g. termination of contract with
supplier A. 120 unsold goods are returned and allocated collection was remitted January 31,
2016) and The bookstore terminates the contract with justifiably and that was proof-based to
who breaches the contract with means and standard deviations of 2.90 and 0.32, for both. On
the other hand, the lowest mean was obtained by the second and fourth statement The bookstore
follows the amount of time given by the consignor to return the books after the termination of
agreement and The bookstore, during termination, segregates books to be returned properly
identified and counted before the date of actual return with means and standard deviations of
2.50 and 0.53 and 2.50 and 0.85, for the second and fourth respectively. In overall, all of the
practices above are always practiced by the bookstores sampled. Meaning they adhere.
Conversely, the explanations here are the same as that of the return of products, but the focus is
more on termination where larger volume and important significant financial and legal matters
are involved. According to Kieso et al. (2011), in times of termination of the contract due to
reasonable reason with the consignor, the consignee should make a memorandum entry
specifying the amount, units and other specifications to be returned. The bookstores sampled
always practiced the third item, meaning they adhere. The importance of making this entry is
exactly the same with that of return of products. The only difference is that in termination, legal
matters are far more involved. The second statement is always practiced as expected by the
bookstores sampled. They adhere to having a proper agreement of return period after approval of
termination as this was stipulated in the consignment agreement. This will help prevent undue
61
loss and damages expenses in times of undue custody of merchandise in the hand of the
consignee.
Meanwhile, the fourth statement is concerned with segregation and identification at the
end of contract return point. Bookstores have been always establishing a segregation and
identification policy from risk of loss, return of products to termination. This time segregation
and identification pertains between those consigned goods to be returned at time of termination
and not to be returned. This will help prevent confusions as this was a preventive control. The
difference from return of products lies in the sense that segregation now also includes
segregation of important source documents and latter disposing of those as the contract is now
terminated. Proper amount of time before disposition is needed for back-up to be used in times of
need for an audit.
On the same hand, the first statement was always practiced by the bookstores sampled. They
adhered by using inventory log record from risk of loss, damages and confusions to know and
evaluate if the condition of what is received from beginning is the same as what is to be returned
(the log includes specific specification). They also portray adherence in this practice during
segregation. Segregation not just involves physical segregation but also always checking of what
is to be segregated is in the condition fit for return.
Lastly, termination of a contract should be justifiable. The bookstores always practice this tem,
meaning they adhere. It is to be noted that some bookstores does not already encounter
termination proceedings. Rather interesting was that they answered according to what is
stipulated in their consignment agreement. According to Johnson (2012), there many reasons of
the termination namely breach of contract, impossibility of performance, prior agreement,
rescission or completion. Both parties should have signed the notice of termination of
62
consignment agreement (in letter or through notary) before proper legal proceedings will be set
forth. Also according to him, termination is justifiable if its terms and causes are not against
existing civil rights, commercial laws, retail business law, and other applicable law and
regulations.
Therefore, in general, it can be concluded and expected that bookstores sampled have its
termination and legal proceedings properly managed. Accounting and internal control practices
were always in placed that help the business in achieving a well-established accounting
information system for termination that adheres to what are prescribed.
2.7 Legal items
the level of adherence on the prescribed legal items practices of university bookstores.
Table 11
Level of Adherence on the Prescribed Legal items Practices of University Bookstores
Prescribed Legal items Practices
1. The bookstore cancels the
consignment by giving notice in
writing, if the consignor is unable to
deliver the consignment within a
reasonable period after giving notice
under delay of delivery due to force
majeure.
2. All notices are duly signed by the
bookstore, or on behalf of the party,
giving it and are served by delivering
it personally to the relevant party.
3. The consignment agreement
properly sets forth law and
jurisdiction that are to be construed
and performed in accordance with the
Philippine Law.
4. The consignment agreement is put
in to writing properly signed for and
on behalf of the consignor and the
Mean
SD
Adjectival
Description
Interpretation
2.00
0.82
Sometimes
practiced
Adhere with
limitations
2.90
0.32
Always
practiced
Adhere
2.90
0.32
Always
practiced
Adhere
2.80
0.42
Always
practiced
Adhere
63
consignee.
5. The bookstore properly presents
and classifies consignment specific
accounts such as special types of
commission- Del Grede.
Composite Mean
2.40
0.52
Sometimes
practiced
Adhere with
limitations
Always
Adhere
practiced
2.60
0.33
The highest mean was obtained by the second and third statement All notices are duly signed by
the bookstore, or on behalf of the party, giving it and are served by delivering it personally or
virtually to the relevant party and The consignment agreement properly sets forth law and
jurisdiction that are to be construed and performed in accordance with the Philippine Law with
means and standard deviations of 2.90 and 0.32, for both. On the other hand, the lowest mean
was obtained by the first statement The bookstore cancels the consignment by giving notice in
writing, if the consignor is unable to deliver the consignment within a reasonable period after
giving notice under delay of delivery due to force majeure with mean and standard deviation of
2.00 and 0.82, respectively. In overall, all of the practices above are always practiced by the
bookstores sampled. Meaning they adhere. There is an evident problem in this category as all the
practices mentioned above should always be practiced by the bookstores as these are legal items
as set forth by law and by competent accounting authorities. Conversely, two are sometimes
practiced. Laws and regulation to be followed serves as directive type of internal control for
different businesses.
The first and second statement about delay of delivery is of great responsibility of the consignee.
Delay entails loss of profit, or at the worse, loss of customer. According to Article 1169 of The
Civil Code of the Philippines However, the demand by the creditor shall not be necessary in
order that delay may exist: . (2) When from the nature and the circumstances of the obligation
64
it appears that the designation of the time when the thing is to be rendered was a controlling
motive for the establishment of the contract Therefore, giving a written (meaning in letter or in
any written form) should always be practiced by the bookstores in times of delay after giving
notice under delay of delivery due to force majeure. They do not adhere to a law, whose benefit
is vested upon them. Moreover, this notice or any kind of notice should be signed by the relevant
parties (consignee, consignor, and/or third parties) before applicability and enforceability can be
sued upon. Good to know that this was always practiced by the bookstores sampled. Meaning,
they adhere.
On the other hand, the third and fourth statements are also a law related practice. Bookstores
always practice these items. Meaning they adhere to the law. The third statement, is guided by
Article 1306 of the Civil Code of the Philippines The contracting parties may establish such
stipulations, clauses, terms and conditions (of the contract) as they may deem convenient
provided they are not contrary to law, morals, good customs, public order, or public policy. Both
parties always stipulate clauses and terms not contrary to law, morals, good customs, public
order, or public policy exclusively from Philippine Law or ay established Philippine
Constitutional Law only. These laws supersede accidental elements (terms) of the contract.
Accordingly, any terms set forth against the law is punishable by civil liability. The fourth
statement is guided by Article 1318 of the Civil Code of the Philippines There is no contract
unless the following requisites concur: (1) Consent of the parties; Consent of the parties is
evident by the signs of both parties and thereafter the two parties should have a written original
copy of the agreement set forth. Bookstore agreement was always signed by both parties, and
they both always have a written copy of the agreement.
65
The last item is an accounting-related practice. Most of the bookstores sampled have special
types of commission and they sometimes practiced presenting and classifying it properly.
According to Philippine Accounting Standards 1 (PAS 1), Paragraph 45 An entity shall retain
the presentation and classification of items in the financial statements from one period to the next
unless Del Crede commission as an example is a special type of commission that should be
properly presented and classified form one period to another as to amount in the Statement of
Comprehensive Income or in the income section of the notes to financial statements. Bookstores
fail to always present and classify, or at least disclose the fact. It entails unfaithful and irrelevant
financial reporting. Consistency of presenting and classifying a type of commission and other
consignment specific accounts should always be practiced by the bookstores sampled.
Therefore, in overall, bookstores sampled always practiced certain practices in this category.
However, two of the lowest as practiced sometimes is a law and very much important
accounting-related practice, respectively. This should not be the case. The bookstores sampled
have weak foundation of the regulatory framework and basic financial reporting for consigning.
To properly manage more legal items, and adhere more, bookstores should have a wellestablished business that evolves from always practicing to both all the accounting procedure and
internal control (esp. regulatory framework) - related practices together without prioritizing
either one, as these two are interconnected.
2.8. Over-all
Table 12 shows the mean, standard deviation, and interpretation of the level of adherence
on the prescribed consignment practices of university bookstores.
Table 12
Level of Adherence on the Prescribed Consignment Practices of University Bookstores
66
Prescribed
Consignment
Practices
Delivery of Goods
Mean
SD
Adjectival
Description
Interpretation
2.82
0.20
Always Practiced
Adhere
Risk of Loss,
Damages and
Confusions
Efforts to Sell
2.62
0.43
Always Practiced
Adhere
2.42
0.26
Sometimes Practiced
Payment, Sales and

Commission
2.94
0.13
Always Practiced
Adhere with
Limitations
Adhere
Return of Products
2.62
0.22
Always Practiced
Adhere
Termination
2.72
0.32
Always Practiced
Adhere
Legal Items
2.60
0.33
Always Practiced
Adhere
Composite Mean
2.68
0.15
Always Practiced
Adhere
The highest mean was obtained by the fourth category Payment, Sales and Commission
with mean and standard deviation of 2.94, 0.13, respectively. On the other hand, the lowest mean
was obtained by the seventh category Efforts to Sell with mean and standard deviation of 2.42,
0.26, respectively.
The highest mean was obtained by delivery of goods and payment, sales and commission.
They always practice these practices, meaning they adhere to what is prescribed. Both are major
accounting procedure and internal control categories of the consignment practices. Bookstores
sampled have good foundation since it is vital for the survival and continuous operation of the
bookstores. The two lowest was obtained by legal items and efforts to sell practices categories.
They always and sometimes practice these practices, meaning they adhere and adhere with
limitations to what is prescribed legal items and efforts to sell practices, respectively. This is not
67
a good sign of a well-operating bookstore. These two, even though, most discretionary needs to
comply with what is prescribed, as these prescribed are just the basics; noncompliance of these
fundamentals results to worthlessness of the bulk of consignment practices. According to
Athitakis (2010), bookstores nowadays, lack the capability of expanding due to lack of capability
to innovate and find more ways on how to get out of the box. It is a domino effect because the
improvement of one dimension results to a direct or indirect improvement of the other
dimensions. This notion gives justice to the need of an improvement (though always practicing)
of the efforts to sell practices of the bookstores sampled. This will directly or indirectly other
categories like payment, sales and commission and delivery of goods. How? The regular
practicing of efforts to sell practices will result to a constant increase in commission; the
consignor will see the effort and reward through increasing commission. In delivery of goods,
always practicing the efforts to sell practices will result to consignor paving way to shoulder all
of the delivery cost of expenses, as this helps establishing trust and consideration between the
consignor and consignee. When trust is established, considerations can be expected from the
consignor (Far Eastern University, 2015). With this, a future adherence, near to perfect, can be
expected. Meanwhile, future harmonization concurrently works with the increase in adherence.
Therefore, in general, bookstores sampled always practice the prescribed consignment
practices, and conversely, marketing-related provisions are sometimes practiced. They adhere to
all of the provisions, except to efforts to sell practice which in contrary should not be the case.
The fundamental aspect of the marketing dimension of the consignment business adds more
value to the bookstore itself. Without it, a holistic operation can never be achieved. Even though
consignment has accounting procedure and internal controls as major foundations, they should
68
still follow proper efforts to sell practice as these are directive internal controls; hence an internal
control also.
3. Differences in the Level of Adherence on the Prescribed Consignment Practices when
Grouped According to Years of Operation
3.1 Delivery of Goods
Table 13 shows the mean, standard deviation, significant value, decision on HO and
interpretation of different groups on the level of adherence on the prescribed delivery of goods
practices of university bookstores.
Table 13
Differences in the Level of Adherence on the Prescribed Delivery of Goods Practices when
Prescribed Delivery of Goods Years of Mean SD
Sig Decisio Interpretation
Practices
Operation
n on HO
1. The bookstore labels
1-5 years 2.50
consigned books with an
0.707
identification tag (e.g.,
6-10 years 2.75 0.50 .374
Accept Not Significant
serial number, codes,
colored tag) when such 11 years
3.00 0.00
books are received.
and above
2. The bookstore records
all
delivery
costs 1-5 years 3.00 0.00
shouldered
by
the
.472
consignee. (A debit to 6-10 years 2.75 0.50
Receivable
from
Consignor and a credit to 11 years
3.00 0.00
and above
Cash are recorded)
1-5 years 3.00 0.00
a memorandum entry
(e.g. A receipt of 100
units of books consigned 6-10 years 3.00 0.00
1.000 Accept Not Significant
is received on January 1,
2016) and the title of
products still remains 11-15 years 3.00 0.00
with the consignor.
69
4.
The
bookstore 1-5 years
receives the initial list
prices
together
after 6-10 years
examining
appropriate
11-15 years
terms.
5.
The
bookstore 1-5 years
properly stocks delivered
6-10 years
books
in
a
central
stockroom or inside the
11-15 years
bookstore premises.
Over-all
2.00
0.00
2.75
0.50
3.00
0.00
2.50
0.707
2.75
0.50
2.75
0.50
1-5 years 2.60

6-10 years 2.80
11-15 years 2.95
0.283
.163
0.10
.055
Accept
Not Significant
.807
Accept
Not Significant
.131
Accept
Not Significant
There is no significant difference among bookstores grouped according to years of operation in

terms of labelling consigned books with an identification tag when such books are received.
Therefore, it is very important to label an identification tag to consigned goods received for a
proper and organized arranging of books in order to distinguish whether the book is consigned or
owned.
terms of recording all delivery costs unless it is reimbursable to the consignor.
Therefore, recording a delivery cost is a must since it is not recoverable from the consignor as
the bookstore disburse an amount of money to maintain fairness and to avoid overstatement of
income.
terms of recording a memorandum entry and remaining the title of products with the consignor.
Therefore, a memorandum entry is expected to be prepared always as you receive the consigned
books because the ownership is not transferred and a journal entry is not applicable.
70

terms of receiving the initial list prices together with the signed agreement after examining
appropriate terms
Therefore, an initial list of prices with signed agreement is a formal way of approval and giving
trust to the bookstore to sell the books consigned with their respective prices at agreed
commission rate.
terms of stocking delivered books in a central stockroom or inside the bookstore premises.
Therefore, it is just normal to place the books consigned in the stockroom or inside the bookstore
premises as they believe that the books were supposed to be placed there.
3.2 Risk, Loss, and Damages

interpretation of different groups on the level of adherence on the prescribed risk, loss, and
damages practices of university bookstores.
Table 14
Differences in the Level of Adherence on the Prescribed Risk, Loss, and Damages Practices
when Grouped According to Years of Operation
Prescribed Risk of Loss,
Damages and Confusions
Practices
1. The books are checked
and examined for visible
signs
and
concealed
damages or loss, and if
discovered, it is reported
immediately
to
the
consignor.
Years of Mean
Operation
SD
1-5 years
2.00
0.707
6-10 years
3.00
0.00
11 years
and above
3.00
0.00
1-5 years
3.00
0.00
Sig
Decisio Interpretation
n on HO
0.012
Reject
Significant
0.472
Accept
Not Significant
71
loss and damages so

6-10 years
long
as
it
is
the
negligence
of
the
bookstore. (A Debit to
11 years
appropriate
expense and above
account and a Credit to
cash)
3. The bookstore insures the
1-5 years
books against all risks against
which are customarily insured,
including insurance for theft 6-10 years
and damage, and provides
evidence of such insurance
coverage to the consignor as 11-15 years
and when requested.
4. The bookstore makes sure to 1-5 years
meet certain standards in
keeping the books, such as their 6-10 years
segregation from goods wholly
owned or held under a claim of 11-15 years
ownership or interest.
5. The bookstore maintains an 1-5 years
accurate physical inventory log
records of consigned books 6-10 years
delivered after examining the
11-15 years
books.
Over-all
2.75
0.50
3.00
0.00
1.00
0.00
2.50
0.577
2.25
0.957
1.00
0.00
2.75
0.50
3.00
0.00
3.00
0.00
2.75
0.50
3.00
0.00
1-5 years 1.90

6-10 years 2.75
11-15 years 2.85
0.143
Accept
Not Significant
0.030
Reject
Significant
0.472
Accept
Not Significant
.141
0.252 0.090
0.191
Accept
Not Significant
There is a significant between the 1-5 years group and 6-10 years group in terms of checking and
examining for visible signs of damages or loss and if discovered concealed damages or loss, it is
reported immediately to the supplier.
There is a significant between the 1-5 years group and 11 years and above group in terms of
checking and examining for visible signs of damages or loss and if discovered concealed
damages or loss, it is reported immediately to the supplier.
Therefore, all bookstores are not meticulous in receiving the consigned books regarding its
condition as they are not into shouldering the additional loss and expenses when defects occur.
72
The 1-5 years group is the only bookstores that are starting to strengthen their internal control of
their receiving department regarding on checking the consigned books delivered unlike the other
two groups that absolutely adhere with the practice.
There is no significant between the 6-10 years group and 11 years and above group in terms of
Therefore, the two longer operating year bookstores group implement stronger internal control in
receiving department for checking the visible signs of damages to prevent future expenses and
losses to be shouldered by the bookstores since they order more massive number of consigned
books that the starting to operate bookstores.
terms of recording loss and damages unless it is the negligence of the bookstore.
Therefore, all the bookstores maintain fairness and honesty in their relationship between the
consignors.
terms of getting insured the books against all risks against which are customarily insured,
including insurance for theft and damage, and provides evidence of such insurance coverage to
the consignor as and when requested.
Therefore, all bookstores are following terms and conditions in the agreement contract as per
requested by the consignors to avoid rifts and misunderstandings.
Since, there is a significant difference between the level of adherence of bookstores

sampled to the prescribed first practice of the risk of loss, damages and confusions category,
73
post-hoc test was done to know where the difference lies. The post-hoc test is illustrated in Table
15 below.
Table 15
Follow-up Test on the Differences in the Level of Adherence of Selected University
Bookstores on the First Practice of the Risk of Loss, Damages and Confusions Category
When Grouped According to Years of Operation
There is a significant between the 1-5 years group and 6-10 years group in terms of checking and
examining for visible signs of damages or loss and if discovered concealed damages or loss, it is
reported immediately to the supplier.
There is a significant between the 1-5 years group and 11 years and above group in terms of
Therefore, all bookstores are not meticulous in receiving the consigned books regarding its
condition as they are not into shouldering the additional loss and expenses when defects occur.
The 1-5 years group is the only bookstores that are starting to strengthen their internal control of
their receiving department regarding on checking the consigned books delivered unlike the other
two groups that absolutely adhere with the practice.
74
There is no significant between the 6-10 years group and 11 years and above group in terms of
Therefore, the two longer operating year bookstores group implement stronger internal control in
receiving department for checking the visible signs of damages to prevent future expenses and
losses to be shouldered by the bookstores since they order more massive number of consigned
books that the starting to operate bookstores.
terms of recording loss and damages unless it is the negligence of the bookstore.
Therefore, all the bookstores maintain fairness and honesty in their relationship between the
consignors.
terms of getting insured the books against all risks against which are customarily insured,
including insurance for theft and damage, and provides evidence of such insurance coverage to
the consignor as and when requested.
Therefore, all bookstores are following terms and conditions in the agreement contract as per
requested by the consignors to avoid rifts and misunderstandings.
Since, there is a significant difference between the level of adherence of bookstores

sampled to the prescribed fourth practice of the risk of loss, damages and confusions category,
post-hoc test was done to know where the difference lies. The post-hoc test is illustrated in Table
16 below.
75
Table 16
Follow-up Test on the Differences in the Level of Adherence of Selected University
Bookstores on the Fourth Practice of the Risk of Loss, Damages and Confusions Category
When Grouped According to Years of Operation
11 years
1-5
6-10
and
Risk of Loss, Damages and Confusions
Years of
years
Mean years
above
Practice
Operation
1.00
2.75
3.00
1-5
1.00
*
*
years
The bookstore makes sure to meet certain
standards in keeping of the books, such as
6-10
2.75
*
their segregation from goods wholly owned or
years
held under a claim of ownership or interest.
11 years
3.00
*
and above
There is a significant difference between 1-5 years group and 6-10 years group in terms of
assuring to meet certain standards in keeping of the books, such as their segregation from goods
wholly owned or held under a claim of ownership or interest.
There is a significant difference between 1-5 years group and 11 years and above group in terms
of assuring to meet certain standards in keeping of the books, such as their segregation from
goods wholly owned or held under a claim of ownership or interest.
Therefore, not all bookstores are organized in segregation of books owned and consigned as they
are prone confusions and additional expenses or loss. Only the 1-5 years group does not adhere
with the practice in a belief that they hold few books so they can easily identify whether it is
consigned or owned. Also, they may be starting to apply a stronger internal control in the future
unlike the other two groups that absolutely adhere.
There is no significant difference between 6-10 years group and 11 years and above group in
terms of assuring to meet certain standards in keeping of the books, such as their segregation
from goods wholly owned or held under a claim of ownership or interest.
76
Therefore, the longer years of operation implements a strong internal control especially the
segregation of wholly owned and consigned books since the bookstores are assumed to hold
more books for sale than the bookstores that are still starting.
terms of maintaining an accurate physical inventory log records of consigned books
Therefore, the bookstores are properly monitoring the correct amount and quantity of consigned
books as it is a sign of a stronger internal control.
3.3 Efforts to Sell
interpretation of different groups on the level of adherence on the prescribed efforts to sell
Table 17
Differences in the Level of Adherence on the Prescribed Efforts to Sell Practices when
Prescribed Efforts to Sell
Practices
1. The bookstore entices
student demand for the book by
proper
positioning
and
displaying of books.
the advertising expenses
incurred. (A Debit to
Receivable
from
Consignor and a Credit
to Cash)
Years of Mean
Operation
1-5 years
2.00
0.00
6-10 years
2.50
0.577 0.259
11 years
and above
2.75
0.50
1-5 years
3.00
0.00
6-10 years
1.50
0.577
11 years
and above
1.75
0.50
1.50
0.707
2.50
0.577
2.50
1.00
1-5 years
3.
The
bookstore
is
implementing
copyright
6-10 years
infringement violation rules.
11-15 years
SD
Sig
0.067
0.291
n on HO
Accept
Not Significant
Accept
Not Significant
Accept
Not Significant
77
4. The bookstore agrees with 1-5 years

the consignors price and is
justifiable enough to have a 6-10 years
high demand for the product
for assurance of high volume 11-15 years
sales.
5. The bookstore staff has an 1-5 years
oral tradition of promoting the
books and courtesy to the 6-10 years
students.
11-15 years
Over-all
2.50
0.707
2.75
0.50
3.00
0.00
3.00
0.00
2.25
0.50
2.75
0.50
1-5 years 2.40

6-10 years 2.30
11-15 years 2.55
0.374
Accept
Not Significant
0.185
Accept
Not Significant
0.00 0.479
0.258
0.30
Accept
Not Significant
There is no significant difference among bookstores grouped according to years of

operation in terms of enticing student demand for the book by proper positioning and displaying
of books.
Therefore, all bookstores are displaying the books inside the premises as where it should be and
at the same time a way of marketing.
operation in terms of recording the advertising expenses incurred.
Therefore, all the bookstores are accountable for the advertising expenses they incur as it is their
own way to maximize commission income.
operation in terms of implementing copyright infringement violation rules.
Therefore, all bookstores are selling consigned book and still following the legality of law when
it comes to copyright terms.
terms of agreeing with the consignors price and is justifiable enough to have a high demand for
the product for assurance of high volume sales.
78
Therefore, all the consignors dictate their prices and minimum amount of sales before
they allow to consign their books to avoid losses as they shoulder often the delivery expenses.
terms of having an oral tradition of promoting the books and courtesy to the students.
Therefore, bookstores introduce orally as a tradition their books to all students.
3.4 Payment, Sales and Commission
interpretation of different groups on the level of adherence on the prescribed payment, sales and
commission practices of university bookstores.
Table 18
Differences in the Level of Adherence on the Prescribed Payment, Sales and Commission
Prescribed Payment, Sales
Years of Mean SD
and Commission Practices Operation
n on HO
1. The bookstore reconciles 1-5 years
3.00 0.00
those received from what is 6-10 years 3.00 0.00
recorded at least daily unless 11 years
3.00 0.00
weekly is more efficient.
and above
2. The bookstore remits 1-5 years
3.00 0.00
proceeds of sale of consigned
books to the consignor or to 6-10 years 2.50 0.577
0.185
deposit them in a special
account on or before the period 11 years
3.00 0.00
and above
agreement.
3. The bookstore records sales 1-5 years
3.00 0.00
of consigned books as a Debit 6-10 years 3.00 0.00
to Cash and a Credit to Payable
11-15 years 3.00 0.00
to the Consignor.
4. Notification of sale, expense 1-5 years
3.00 0.00
and remittance are recorded as
Debit to Payable to Consignor 6-10 years 3.00 0.00 1.000 Accept Not Significant
and a Credit to Commission
11-15 years 3.00 0.00
Income and Cash.
3.00 0.00
5. The bookstore with the 1-5 years
consignor stipulates proper 6-10 years 2.75 0.50
79
11-15 years
agreement of commission rate
putting into consideration,
improvement of Sales as
Over-all
1-5 years
6-10 years
11-15 years
3.00
0.00
3.00
2.85
3.00
0.00
0.191 0.189
0.00
Accept
Not Significant

terms of reconciling those received from what is recorded at least daily unless weekly is more
efficient.
Therefore, all bookstores apply a strong internal control in reconciliation of consigned books to
prevent the errors, fraud, and losses.
terms of remitting the proceeds of sale of consigned books to the consignor or to deposit them in
a special account on or before the period agreement.
Therefore, all bookstores remit the all sales of consigned books on time as they follow the terms
and conditions in agreement.
terms of recording sales of consigned books as a Debit to Cash and a Credit to Payable to the
Consignor.
Therefore, all bookstores are following the same pattern in recording sales of consigned books.
terms of recording debit to payable to consignor and a credit to commission income and cash
unless receivable are already deducted from those due as notification of sale, expense and
remittance.
80
Therefore, all bookstores are following the same pattern in recording commission income of
consigned books sold.
terms of stipulating proper agreement of commission rate putting into consideration,
improvement of Sales as determinant of commission rate with the consignor.
Therefore, all the bookstores are concerned in the commission rate regarding in the acceptance of
terms and agreement of the consignment contract.
3.5 Return of Products
interpretation of different groups on the level of adherence on the prescribed return of products
Table 19
Differences in the Level of Adherence on the Prescribed Risk Return of Products Practices
when Grouped According to Years of Operation
Prescribed Return of
Years of Mean SD
Products Practices
Operation
n on HO
1. Defective books that are seen 1-5 years 3.00 0.00
or returned by the students are 6-10 years 2.50 0.577
marked by the bookstore as
11
years
defective and returned to the
3.00 0.00
and above
supplier immediately.
2. The bookstore with the 1-5 years 3.00 0.00
consignor properly agrees with
period of return and when the 6-10 years 3.00 0.00 1.00
automatically unsold goods will 11 years
3.00 0.00
be returned.
and above
3. The bookstore records a 1-5 years 3.00 0.00
memorandum entry when there 6-10 years 3.00 0.00
is a return of product. (e.g 100
1.00
units of books were returned to
the consignor due to incomplete 11-15 years 3.00 0.00
pages on January 15, 2016)
4. The bookstore segregates 1-5 years 2.00 0.00 0.055 Accept Not Significant
81
books to be returned properly 6-10 years

identified and counted before
11-15 years
the date of actual return.
5. The bookstore does not 1-5 years
follow the principle of No 6-10 years
Return, No Exchange policy.
11-15 years
Over-all
2.75
0.50
3.00
0.00
3.00
1.00
0.00
0.00
1.50
1.00
1-5 years 2.80

6-10 years 2.45
11-15 years 2.70
0.055
Accept
Not Significant
0.00
0.191 0.080
0.20
Accept
Not Significant

terms of marking defective books that are seen or returned by the students to bookstore as
defective and returned to the supplier immediately
Therefore, all bookstores are not into shouldering the losses from the defective books checked
and returned as they immediately return to suppliers.
terms of agreeing with period of return and when the automatically unsold goods will be returned
with the consignor.
Therefore, all bookstores return the defective and unsold books upon or before the agreed cut-off
date in the terms and conditions.
terms of recording a memorandum entry when there is a return of product.
Therefore, all bookstores are preparing a memorandum entry in returning the unsold copies and
defective consigned books since only memorandum entry was also prepared when they are
received.
82

terms of segregating books returned properly identified and counted before the date of return.
Delivery controls are taken into consideration to eliminate possible future return cost.
Therefore, all bookstores segregate after marking the defective products to be returned and
unsold copies as they apply stronger internal control in returning of books to avoid future
expenses
terms of following the principle of No Return, No Exchange policy unless stipulated in the
agreement.
Therefore, all bookstores allow their students and customers to return the books with in the
replacement or return date so they can easily and immediately return it to the consignors.
3.6 Termination
interpretation of different groups on the level of adherence on the prescribed termination
Table 20
Differences in the Level of Adherence on the Prescribed Risk Termination Practices when
Prescribed Termination
Practices
1. The bookstore returns all
unsold copies at the termination
of consignment period in the
same quality as it was
delivered.
2. The bookstore follows the
amount of time given by the
supplier to return the books
after the termination of
agreement.
Years of Mean
Operation
1-5 years
3.00
6-10 years 2.75
SD
0.00
0.50
Sig
n on HO
0.755
Accept
Not Significant
2.00
0.00
6-10 years
2.50
0.577 0.259
Accept
Not Significant
11 years
and above
2.75
0.50
11 years
and above
2.75
0.50
1-5 years
83
3. The bookstore records a 1-5 years

memorandum entry for return 6-10 years
of unsold copies of books (e.g.
termination of contract with
supplier A. 120 unsold goods
are returned and allocated 11-15 years
collection was remitted
January 31, 2016)
4. The bookstore, during 1-5 years
termination, segregates books
to be returned properly 6-10 years
identified and counted before
11-15 years
the date of actual return.
5. The bookstore terminates the 1-5 years
contract with justifiably and 6-10 years
that was proof-based to who
breaches the contract.
11-15 years
Over-all
3.00
2.75
0.00
0.50
3.00
0.00
2.00
1.414
2.50
1.00
2.75
0.50
3.00
2.75
0.00
0.50
3.00
0.00
1-5 years 2.60

6-10 years 2.65
11-15 years 2.85
0.472
Accept
Not Significant
0.705
Accept
Not Significant
0.472
Accept
Not Significant
0.283
0.443 0.506
0.191
Accept
Not Significant

terms of returning all unsold copies at the termination of consignment period in the same quality
as it was delivered.
Therefore, all bookstores properly take care of the consigned books in the same quality as it is
received and returning it all during the termination of the consignment.
terms of following the amount of time given by the supplier to return the books after the
termination of agreement.
Therefore, all the bookstores follow the deadline on the agreement of termination in returning the
unsold copies.
terms of recording a memorandum entry for return of unsold copies of books
84
Therefore, all bookstores are preparing a memorandum entry in returning the unsold copies of
consigned books since only memorandum entry was also prepared when they are received.
terms of segregating books returned properly identified and counted before the date of return.
Delivery controls are taken into consideration to eliminate possible future return cost.
Therefore, all bookstores properly segregate the consigned books to be returned due to
termination from the books are still held for sale to avoid confusions and future expenses.
terms of terminating the contract with justifiable and proof-based to who breaches the contract.
Therefore, all bookstores present a reasonable proof that caused termination and indicate who
breached the contract.
3.7 Legal Items
interpretation of different groups on the level of adherence on the prescribed legal items practices
of university bookstores.
Table 21
Differences in the Level of Adherence on the Prescribed Legal Items Practices when
Prescribed Legal Items
Practices
1. The bookstore cancels the
consignment by giving notice
in writing, if the consignor is
unable
to
deliver
the
consignment
within
a
reasonable period after giving
notice under delay of delivery
due to force majeure.
2. All notices are duly signed
Years of Mean SD
Operation
1-5 years 1.50 0.707
6-10 years 2.00 0.817
11 years
and above
2.25
0.957
1-5 years
3.00
0.00
Sig
n on HO
0.570
Accept
Not Significant
0.472
Accept
Not Significant
85
by the bookstore, or on behalf

6-10 years
of the party, giving it and are
served
by
delivering
it 11 years
personally to the relevant party. and above
3. The consignment agreement 1-5 years
properly sets forth law and 6-10 years
jurisdiction that are to be
construed and performed in
accordance with the Philippine 11-15 years
Law.
4. The consignment agreement 1-5 years
is put in to writing properly
signed for and on behalf of the 6-10 years
consignor and the consignee.
11-15 years
5. The bookstore properly 1-5 years
presents
and
classifies 6-10 years
consignment specific accounts
such as special types of
11-15 years
commission- Del Grede.
Over-all
2.75
0.50
3.00
0.00
3.00
2.75
0.00
0.50
3.00
0.00
0.472
Accept
Not Significant
3.00
0.00
2.50
0.577 0.185
Accept
Not Significant
3.00
3.00
2.00
0.00
0.00
0.00
0.072
Accept
Not Significant
2.50
0.577
0.141
0.432 0.343
0.191
Accept
Not Significant
1-5 years 2.70

6-10 years 2.40
11-15 years 2.75

terms of cancelling the consignment by giving notice in writing, if the consignor is unable to
deliver the consignment within a reasonable period after giving notice under delay of delivery.
Therefore, all the bookstores give so much importance to time as they cancel immediately when
delay occurs due to the consignor.
terms of signing all notices on behalf of the party, giving it and is served by delivering it
personally or virtually to the relevant party.
Therefore, all bookstores consider the consent of the related parties by signing the notices before
making a decision.
86

terms of setting the consignment agreement according to forth law and jurisdiction that are to be
construed and performed in accordance with the Philippine Law.
Therefore, all bookstores are organizing their business especially the consignment practices with
a guarantee of legality.
terms of putting in to writing properly the consignment agreement signed for and on behalf of the
consignor and the consignee.
Therefore, all bookstores maintain a formal agreement by putting into writing the stipulated
contract.
terms of recording special accounts according to classification.
Therefore, all bookstores are recording special accounts to classification when an unusual
transaction occurs.
3.8 Overall
interpretation of different groups on the level of adherence on the prescribed consignment
Table 22
Differences in the Level of Adherence on the Prescribed Consignment Practices when
Prescribed Consignment Years of Mean SD
Practices
Operation
1-5 years
2.60 0.283
6-10 years 2.80 .163
Delivery of Goods
11-15 years 2.95 0.10
Sig
.131
Decision Interpretation
on HO
Accept
Not Significant
87
1-5 years
Risk of Loss, Damages and 6-10 years
Confusions
11 years
and above
1-5 years
Efforts to Sell
6-10 years
11-15 years
1-5 years
Payment, Sales and
6-10 years
Commission
11-15 years
1-5 years
Return of Products
6-10 years
11-15 years
1-5 years
Termination
6-10 years
11-15 years
1-5 years
Legal Items
6-10 years
11-15 years
1-5 years
Overall
6-10 years
11-15 years
1.90
.141
2.75
0.252 0.090
2.85
0.191
2.40
2.30
2.55
3.00
2.85
3.00
2.80
2.45
2.70
2.60
2.65
2.85
2.70
2.40
2.75
2.57
2.60
2.81
0.00
0.258
0.30
0.00
0.191
0.00
0.00
0.191
0.20
0.283
0.443
0.191
0.141
0.432
0.191
0.040
0.141
0.071
Accept
Not Significant
0.479
Accept
Not Significant
0.189
Accept
Not Significant
0.080
Accept
Not Significant
0.506
Accept
Not Significant
0.343
Accept
Not Significant
0.059
Accept
Not Significant

terms of delivery of goods as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the delivery of goods as they
follow all the prescribed consignment practices whereby they achieve the harmonization among
all.
terms of risk of loss, damages, and confusions as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the risk of loss, damages, and
confusion as they follow all the prescribed consignment practices whereby they achieve the
harmonization among all.
88

terms of efforts to sell as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the efforts to sell as they follow
all the prescribed consignment practices whereby they achieve the harmonization among all.
terms of payments, sales, and commission as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the payments, sales, and
commission as they follow all the prescribed consignment practices whereby they achieve the
harmonization among all.
terms of termination as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the termination as they follow
terms of legal items as a prescribed consignment practice.
Therefore, all the bookstores have the same pattern in organizing the legal items as they follow
terms of over-all of prescribed consignment practices.
Therefore, the all the bookstores are following all prescribed consignment practices in the
country as they already achieve the harmonization among all of them.
89
CHAPTER V
Summary of Findings, Conclusion and Recommendation
Summary of Findings
The research obtained the following results:
1.1 The researchers had ten (10) respondents. Most of them were operating for 6-10
years. It suggests that most of the respondents were just recently established due to increase in
student population that affirms to having a campus bookstore.
The following enumerates the summary of findings with regards to the level of adherence on the
prescribed consignment practices in terms of delivery of goods; risk of loss, damages and
confusions; efforts to sell; payment, sales and commissions; return of products; termination; and
legal items:
2.1 Based from the results of the analysis using weighted means on the delivery of goods
practices, it was determined that the composite mean and standard deviation on this criterion was
2.82 and 0.20, which can be described as Always practiced, and can be interpreted as
"Adhere".
2.2 Based from the results of the analysis using weighted means on the risk of loss,
damages and confusions practices, it was determined that the composite mean and standard
deviation on this criterion was 2.62 and 0.43, which can be described as Always practiced, and
can be interpreted as "Adhere".
2.3 Based from the results of the analysis using weighted means on the efforts to sell
90
2.42 and 0.26, which can be described as Sometimes practiced, and can be interpreted as
"Adhere with limitations".
2.4 Based from the results of the analysis using weighted means on the payment, sales
and commissions practices, it was determined that the composite mean and standard deviation on
this criterion was 2.94 and 0.13, which can be described as Always practiced, and can be
interpreted as "Adhere".
2.5 Based from the results of the analysis using weighted means on the return of products
"Adhere".
2.6 Based from the results of the analysis using weighted means on the termination
"Adhere".
2.7 Based from the results of the analysis using weighted means on the legal items
"Adhere".
2.8 Based from the results of the analysis using weighted means on the consignment
"Adhere".
91
The following enumerates the summary of the findings with regards to the differences on
the level of adherence on the prescribed consignment practices when grouped according to years
of operation:
3.1 Based from the results of the analysis using Kruskall-Wallis H test to test the
difference in the level of adherence on the prescribed delivery of goods practices when grouped
according to years of operation, it showed that all statements' Sig are above .05; accept the null
hypothesis, interpreted as "Not Significant". In overall, it showed a Sig of .131, above .05; accept
the null hypothesis, interpreted as "Not Significant".
difference in the level of adherence on the prescribed risk of loss, damages and confusions
practices when grouped according to years of operation, it showed that three of the statements'
Sig are above .05; accept the null hypothesis, interpreted as "Not Significant", and two of the
statements' Sig are below .05; reject the null hypothesis, interpreted as "Significant". In overall, it
showed a Sig of .090, above .05; accept the null hypothesis, interpreted as "Not Significant".
difference in the level of adherence on the prescribed efforts to sell practices when grouped
according to years of operation, it showed that all statements' Sig are above .05; accept the null
difference in the level of adherence on the prescribed payment, sales and commission practices
when grouped according to years of operation, it showed that all statements Sig are above .05;
accept the null hypothesis, interpreted as "Not Significant". In overall, it showed a Sig of .189,
92
above .05; accept the null hypothesis, interpreted as "Not Significant".

difference in the level of adherence on the prescribed return of products practices when grouped
according to years of operation, it showed that all statements Sig are above .05; accept the null
difference in the level of adherence on the prescribed termination practices when grouped
difference in the level of adherence on the prescribed legal items practices when grouped
difference in the level of adherence on the prescribed delivery of goods practices when grouped
Conclusion
93
Through an extensive analysis of the data gathered, the researchers have concluded the
following:
1. Based on the result on this survey, the researchers have concluded that there are more
bookstores that are operating for 6-10 years as of date of data gathering than those operating for
longer or shorter years. It can be concluded that most of the bookstores in National Capital
Region, owned by the university itself, that uses consignment, and have the target population
mostly are just recently established.
2. In general, it can be concluded that bookstores sampled always practice the prescribed
delivery of goods; risk of loss, damages and confusions; payment, sales and commission; return
of products; termination; and legal items practices. In general, they adhere to the prescribed
delivery of goods; risk of loss, damages and confusions; payment, sales and commission; return
of products; termination; and legal items practices. On the other side, in general, it can be
concluded that bookstores sampled sometimes practiced the different prescribed efforts to sell
practices. In general, they adhere with limitations to the prescribed efforts to sell practices. The
highest mean is obtained by delivery of goods, and payment, sales and commission practices
categories; while the lowest mean is obtained by efforts to sell practices category. It can be
concluded that delivery of goods, and payment, sales and commission practices categories are
major internal and accounting control categories of a consignment business, respectively. On the
other hand, efforts to sell is a more business-discretionary consignment practices category, since
it involves each bookstores own marketing strategy.
Therefore, bookstores sampled have a good foundation in the consignment business
setting, while they still have to know also the very basic of the marketing dimension of the
consignment business to add more value to the university bookstore itself.
94
3. In general, it can be concluded that the level of adherence of bookstores sampled to the
prescribed delivery of goods; risk of loss, damages and confusions; efforts to sell; payment, sales
and commission; return of products; termination; and legal items practices does not vary when
grouped according to years of operation. In general, it can also be concluded that bookstores
sampled always practiced the prescribed delivery of goods; risk of loss, damages and confusions;
payment, sales and commission; return of products; termination; and legal items practices,
adhere to the prescribed delivery of goods; risk of loss, damages and confusions; payment, sales
and commission; return of products; termination; and legal items practices, regardless of their
years of operation in the book consigning retailing business. On the other hand, in general, it can
be conlcuded that bookstores sampled sometimes practiced the prescribed effort to sell practices,
adhere with limitations to the prescribed efforts to sell practices, regardless of their years of
operation in the book consigning retailing business.
Therefore, bookstores sampled, regardless of their years of operation in the book
consigning retailing business, have a good foundation in the consignment business setting, while
they still have to know also the very basic of the marketing dimension of the consignment
business to add more value to the university bookstore itself.
Recommendations
The following are the recommendations developed from thorough consideration of
obtained results:
To the university bookstores sampled (consignee)
95
Specifically, it is recommended for the bookstores sampled to always practice the

following practices, regardless of their years of opearation in the book consigning retailing
business:
- Insure books against all risk, including theft and damage and provide evidence of such
insurance coverage to the consignor as and when requested in any form either as shouldered by
the consignor oe the university administration itself.
- Record advertising expense incurred as Debit to Receivable from Consignor and a
Credit to Cash unless stipulation to the contrary are in the agreement.
- Implement copyright infringemnt violation policies like sanction for photocopied books
and those bought form unauthorized sources.
- Do not follow the principle of "No Return, No Exchange". Therefore, accept return
from students in any cases valid as described by the Department of Trade and Industry (DTI).
- Cancel consignment by always giving notice in writing, if the consignor is unable to
deliver the books within a reasonbale period after giving notice under delay of delivery due to
force majeure. Other forms of notices should be in writing.
- Special accounts such as, but not limited to, Del Crede Commission, special forms of
advertising expense, and other consignment specific acounts, should be given proper
presentation, classification and disclosure as promulgated by Philippine Accounting Standards 1
(PAS 1).
To the consignor (or distributor)
Consignment involves both consignor and consignee; it is a mutual agreement between
the two. A breach of contract from one of them will terminate the agreement, subject to
justifiable proceedings. Conversely, a low level of adherence constitutes a future breach of
96
contract, due to future misconception of what is expected and actually portrayed by the
consignee. The consignor should be very careful on choosing who to consign their goods at, and
who to not. Moreover, the results from this study will also serve as gauge for monitoring
bookstores performance.
To the academe specially in accounting (and students)
We recommend giving importance to the consignment topic in the Advanced Accounting
Two and Auditing Theory course for business students since they were the future accountants
and auditors and they must have an extensive or additional knowledge on the accounting and
internal control basics for consigned goods. It is to be noted that according to Athitakis (2012),
nowadays, consigned goods form the largest part among the inventories held by most
merchandising retailers and some manufacturing companies around the world. Additional lecture
time can be given to this topic in order to give students realization between the real and
theoretical accounting consignment business setting that they can just enhance or update when
they are already in the field practicing what they have learned.
To MTC bookstore
It is recommended for MTC bookstore to also adhere tot he prescirbed consignment
practices. All bookstores, either owned and operated by a university or college administration
should all adhere to the prescribed consignment practices. This practices are requirements or
standard requisites apllicable to all identical and similar retail-types of business in the
Philippines. In addition, by adhering to these, MTC bookstore can have a more established
consigning business operation.
To the future researchers
We recommend continuing working on this research as one of the goal of this research is
97
to further achieve harmonization among different university bookstores around the Philippines.
They can use university bookstores from different parts of the Philippines using the results of
this study as comparative basis. Or they can think of other grouping variables like geographical
location, for more thorough discussion; or new dimensions of comparison through other
dimensions of the consignment business, aside from accounting procedures and internal control
like supply chain management.
It is also recommended for future researchers to use the
remaining provisions in the Legal Zoom's Consignment Agreement Guide, aside from the seven
already used, like taxes and benefits. This will result to a more complete evaluation of the
Philippine university bookstore consigning business.
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98
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Hernandez, Dale Christian A. (2010). Duopolistic price competition in a VMI-Consignment
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gnment&searchscope=1&SORT=D&SUBKEY=consignment/1%2C17%2C17%2CB/fra
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Hesham, Mohamed (2015). Supply Chain Risk Management at Pharco Pharmaceuticals, a
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sequence=1&isisAllow=y
Hoy, Angela (2011). How to Sell to Books on Consignment to Bookstores and Other Retailers.
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consignment-to-bookstores-and-other-retailers
iUniverse (2016). Five Tips to Improve Your Bookselling Efforts. Retrieved from
http://www.iuniverse.com/ExpertAdvice/SellingYourBook/Five-Tips-to-ImproveBookselling-Efforts.aspx
Joven, May (2012). Medicine consignment system for hospitals OK'd. Retrieved from
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LegalZoom.com
(2010).
Consignment
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&
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https://www.legalzoom.com/download/pdf/consignment-agreement.pdf
Liraz,
Meir
(2014).
Guide
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Consignment
Sales.
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From
http://www.bizmove.com/marketing/m2u.htm
Manufacturing Company, Seradex (2012). Consignment and Vendor Managed Inventory
Module. Retrieved from http://www.seradex.com/Consignment_Inventory.shtml
National Association of College Stores (2010). Cost of Textbooks Trending on Social Media and
in the News and NACS Merges Two Businesses; Provides Campus Retailers with OneStop Purchasing Solution. Retrieved from http://www.nacs.org/
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https://internalaudit.nsula.edu/internal-controls/
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QAD
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Ramrakhyani, Ravi Kumar (2010). Analysis of Vendor Managed Consignment Inventory
Systems. Retrieved from http://search.proquest.com/docview/305109382
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https://retailminded.com/stockroom/
Salvador, Jay Mark G., Manoloto, Alejandro M. II, and Mazo, Jimuel N. (2010). Enhancement of
The Accounting System and Internal Control for Efficient Management of Funds and
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%5D=6162
Silverberg, Jay and Glover, David (2014). The Future College Bookstore: Leave the Books, Take
the Panini. Retrieved from http://www.fastcoexist.com/3036953/futurist-forum/thefuture-college-book-store-leave-the-books-take-the-panini
Simple Studies, Accounting Made Simple (2015). Accounting for Consigned Goods. Retrieved
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Students
Asalamjan
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Tan, Charles (2010). Book Distribution in the Philippines. Retrieved from http://charlestan.blogspot.com/2007/07/book-distribution-in-philippines.html
The
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http://www.thestylelistla.com/consignment-agreement/
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What You Should Know. What You Should Know About Loss and Damage Claims. Retrieved
from http://my.yrc.com/national/help/tools_claims3.html#Consignee
Wise, Aaron N. (2010). Placing Your Goods On Consignment With Your American Business
Partner: What the Foreign Exporter and Its Financing Bank or Factor Should Know.
Retrieved
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http://www.gdblaw.com/siteFiles/526cbb41-0cb6-4284-9aac-
c9feb26de48c/custom/files/PlacingGoods_Eng.pdf
103
Appendix A
PANELISTS COMMMENTS AND RECOMMENDATIONS

Preliminary Research Defense
College: College of Accountancy and Management Research Group: 2 Date: 01/15/16
Research Title: The Level of Adherence of Selected University Bookstores around National
Capital Region to the Prescribed Consignment Practices: A Comparative Study
104
Panel
Jason R. Radam, CPA
Comments and Recommendations

Criteria- How do you select the college-owned bookstore?
What is the minimum order of items? (or books)
Make the 16 practices mentioned in the Conceptual
Framework be the basis in the formulation of the
Dr. Lino C. Reynoso
Dr. Don Magpantay
questionnaire.
Respondents- everyone who is engaged in consignment
regardless of their position.
Look for the main source of the 16 practices mentioned.
Check if there is an existing consignment law.

Preliminary Research Defense
Panel
Jason R. Radam, CPA

Change the title to: The Level of Adherence of Selected
Dr. Lino C. Reynoso
University Bookstoresto the Prescribed

The integrity of the data is in question.
105
- It appears in the paper that the 40 respondents are

representative of 40 institutions; however, only 11
universities were surveyed.
- There should have been just 1 respondent per institution.
Discuss in the limitation the reason why the researchers got
only 11 universities as respondents.
Re-process the statistical analyses with just 11 respondents.
Use a non-parametric test: Kruskall-Wallis
Be specific in the conclusions and recommendations based
on the SOP.
Clarified in the paper whether the researchers are
Dr. Don Magpantay
Adrian Mangabat Lawsin, RN,
MAN
investigating practiced or adherence.

Revise/reword the questions in the questionnaire; most of
the questions are directional.
106

Final Research Defense
Panel
Jason R. Radam, CPA and
Dr. Don Magpantay

Improve the discussion of the variables in the Conceptual
Framework. Establish the integrity of LegalZoom.
Revise the description and interpretation of the scale:
Always practiced
Adhere
Dr. Maria Veronica Joy M. Binuya

Sometimes practiced = Adhere with limitations
Dr. Lino C. Reynoso
Not practiced
= Not adhere
Define relevant terms/variables in the Definition of Terms.
Combine 11-15 years and 16 years and above. The number
of respondents in the group is statistically improbable when
analysed.
The statistical tool used in the analysis of tables should be
107
Kruskall-Wallis instead of Chi-square.

Include/ improve analysis and interpretation for the tables
in Chapter IV.
The interpretation of results is incorrect.
Appendix B
108
PRESCRIBED CONSIGNMENT PRACTICES QUESTIONNAIRE
Respondent Code No.________
SURVEY
Good day! I would like to get your honest opinion related to your activity, which will only take
five minutes of your time. Rest assured that everything stated here will be treated with utmost
confidentiality. These will be used solely as inputs for the course requirement in Business
Research.
Begas, Dan Paul C.
Corona, Renz Mico F.
Cruz, Christine Angela B.
Maca-alin, Allaniah H.
Palustre, Red Christian L.
PART A. Demographic Questionnaire

A.1 Years of operation
1-5 yrs.
6-10 yrs.
10-15 yrs.
16 yrs. and above
Directions: Please select the answers that best express your judgment of each case. Please TICK
only one: from 3 (Adhere), 2 (Adhere with limitations) to 1 (Not Adhere) on each of the
109
statements, which you think are nearest to your point of view. There is neither right nor wrong
answers.
PART B. Delivery of goods

Statements
B.1.
The bookstore labels consigned books with

an identification tag (e.g., serial number,
codes, colored tag) when such books are
received.
B.2.
The bookstore records all delivery costs

shouldered by the consignee. (A debit to
Receivable from Consignor and a credit to
Cash are recorded)
B.3.
The bookstore records a memorandum

entry (e.g. A receipt of 100 units of books
consigned is received on January 1, 2016)
and the title of products still remains with
the consignor.
B.4.
The bookstore receives the initial list prices

together after examining appropriate terms.
B.5.
The bookstore properly stocks delivered

books in a central stockroom or inside the
bookstore premises.
Adhere
Adhere with
limitations
Not adhere
Adhere
Adhere with
limitations
Not adhere
PART C. Risk of loss, damages and confusions

Statements
C.1.
The books are checked and examined for

visible signs and concealed damages or
loss, and if discovered, it is reported
immediately to the consignor.
C.2.
The bookstore records loss and damages so

long as it is the negligence of the
bookstore. (A Debit to appropriate expense
110
account and a Credit to cash)

C.3.
The bookstore insures the books against all

risks against which are customarily
insured, including insurance for theft and
damage, and provides evidence of such
insurance coverage to the consignor as and
when requested.
C.4.
The bookstore makes sure to meet certain

standards in keeping the books, such as
their segregation from goods wholly
owned or held under a claim of ownership
or interest.
C.5.
The bookstore maintains an accurate

physical inventory log records of
consigned books delivered after examining
the books.
PART D. Efforts to sell

Statements
D.1.
The bookstore entices student demand for

the book by proper positioning and
displaying of books.
D.2.
The bookstore records the advertising

expenses incurred. (A Debit to Receivable
from Consignor and a Credit to Cash)
D.3.
The bookstore is implementing copyright

infringement violation rules.
D.4.
The bookstore agrees with the consignors

price that is justifiable enough to have a
high demand for the product for assurance
of high volume sales.
D.5.
The bookstore staff has an oral tradition of

promoting the books and courtesy to the
students.
Adhere
Adhere with
limitations
Not adhere
111
PART E. Payment, Sales and Commissions

Statements
E.1.
The bookstore reconciles those received

from what is recorded at least daily, unless
weekly is more efficient.
E.2.
The bookstore remits proceeds of sale of

consigned books to the consignor or to
deposit them in a special account on or
before the period agreement.
E.3.
The bookstore records sales of consigned

books as a Debit to Cash and a Credit to
Payable to the Consignor.
E.4.
Notification of sale, expense and

remittance are recorded as Debit to
Payable to Consignor and a Credit to
Commission Income and Cash.
E.5.
The bookstore with the consignor

stipulates proper agreement of commission
rate putting into consideration,
improvement of Sales as determinant of
commission rate.
Adhere
Adhere with
limitations
Not adhere
Adhere
Adhere with
limitations
Not adhere
PART F. Return of Product

Statements
F.1.
Defective books that are seen or returned

by the students are marked by the
bookstore as defective and returned to the
consignor immediately.
F.2.
The bookstore with the consignor properly

agrees with period of return and when will
the unsold goods automatically be
returned.
112
F.3.

entry when there is a return of product.
(e.g. 100 units of books were returned to
the consignor due to incomplete pages on
January 15, 2016)
F.4.
The bookstore segregates books to be

returned properly identified and counted
before the date of actual return.
F.5.
The bookstore does not follow the

principle of No Return, No Exchange
policy.
PART G. Termination
Statements
G.1.
The bookstore returns all unsold copies at

the termination of consignment period in
the same quality as it was delivered.
G.2.
The bookstore follows the amount of time

given by the consignor to return the books
after the termination of agreement.
G.3.

entry for return of unsold copies of books
(e.g. termination of contract with supplier
A. 120 unsold goods are returned and
allocated collection was remitted January
31, 2016)
G.4.
The bookstore, during termination,

segregates books to be returned properly
identified and counted before the date of
actual return.
G.5.
The bookstore terminates the contract with

justifiably and that was proof-based to who
breaches the contract.
Adhere
Adhere with
limitations
Not adhere
Adhere
Adhere with
limitations
Not adhere
PART H. Legal items

Statements
113
H.1.
The bookstore cancels the consignment by

giving notice in writing, if the consignor is
unable to deliver the consignment within a
reasonable period after giving notice under
delay of delivery due to force majeure.
H.2.
All notices are duly signed by the

bookstore, or on behalf of the party, giving
it and are served by delivering it
personally to the relevant party.
H.3.
The consignment agreement properly sets

forth law and jurisdiction that are to be
construed and performed in accordance
with the Philippine Law.
H.4.
The consignment agreement is put in to

writing properly signed for and on behalf
of the consignor and the consignee.
H.5.
The bookstore properly presents and

classifies consignment specific accounts
such as special types of commission- Del
Grede.
END OF THE SURVEY THANK YOU FOR YOUR PRECIOUS TIME.
114
115
116
117
118
RELIABILITY TESTING
RELIABILITY
/VARIABLES=B1 B2 B3 B4 B5 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5 E1 E2 E3 E4 E5 F1 F2 F3
F4 F5 G1 G2 G3 G4 G5 H1 H2 H3 H4 H5
/SCALE('ALL VARIABLES') ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE SCALE CORR
/SUMMARY=TOTAL.
Reliability
Notes
Output Created
Comments
Input
Missing Value
Handling
25-FEB-2016 19:32:08
Data
Active Dataset
Filter
Weight
Split File
N of Rows in Working
Data File
Matrix Input
Definition of Missing
Cases Used
Syntax
Resources
Processor Time
Elapsed Time
C:\Users\kurtvallada\Music\Doc
uments\Selected university
bookstores Results.sav
DataSet1
<none>
<none>
<none>
20
User-defined missing values are
treated as missing.
Statistics are based on all cases
with valid data for all variables
in the procedure.
RELIABILITY
/VARIABLES=B1 B2 B3 B4
B5 C1 C2 C3 C4 C5 D1 D2 D3
D4 D5 E1 E2 E3 E4 E5 F1 F2
F3 F4 F5 G1 G2 G3 G4 G5 H1
H2 H3 H4 H5
/SCALE('ALL VARIABLES')
ALL
/MODEL=ALPHA
/STATISTICS=DESCRIPTIVE
SCALE CORR
/SUMMARY=TOTAL.
00:00:00.03
00:00:00.14
119
Warnings
Each of the following component variables has zero variance and is
removed from the scale: H4
The determinant of the covariance matrix is zero or approximately zero.
Statistics based on its inverse matrix cannot be computed and they are
displayed as system missing values.
Scale: ALL VARIABLES

Case Processing Summary
N
%
Cases Valid
20
100.0
a
Excluded
0
.0
Total
20
100.0
a. Listwise deletion based on all
variables in the procedure.
Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha
Items
N of Items
.916
.895
34
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
Item Statistics
Std.
Mean
Deviation
2.90
.308
2.50
.827
2.90
.308
2.25
.550
2.30
.801
2.20
.616
2.50
.513
1.65
.671
2.25
.851
2.65
.489
2.00
.649
N
20
20
20
20
20
20
20
20
20
20
20
120
D2
D3
D4
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
1.95
2.15
2.65
2.05
2.60
2.35
2.40
2.50
2.75
2.60
2.55
2.40
2.30
2.55
2.05
2.10
2.40
1.85
2.30
2.00
2.65
2.95
2.30
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
D5
E1
E2
E3
B1
1.000
-.207
-.111
.155
.128
.389
-.333
.331
.503
.105
.000
-.405
.069
.454
-.473
-.272
-.238
-.218
.887
.745
.489
.686
.503
.933
.940
.827
.444
.503
.686
.940
.733
.826
.759
.553
.940
.875
.923
.562
.489
.224
.801
B2
-.207
1.000
.620
-.058
.397
.207
.620
.427
-.187
.325
.392
.681
.213
-.325
.232
.760
.920
.947
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Inter-Item Correlation Matrix

B3
B4
B5
C1
-.111
.155
.128
.389
.620
-.058
.397
.207
1.000
.155
.555
.111
.155
1.000
.657
.000
.555
.657
1.000
.405
.111
.000
.405
1.000
.333
-.093
.128
.000
.331
.107
.401
.561
-.302
.309
.193
.503
.454
.538
.685
-.105
.527
-.295
.304
.395
.366
-.189
.096
-.077
.069
.546
.538
.505
-.245
.538
.013
-.280
.025
-.174
.067
-.149
.408
.000
.314
.102
.495
.128
.486
.147
.509
.102
.531
.218
C2
-.333
.620
.333
-.093
.128
.000
1.000
.076
-.543
.105
.158
.867
.069
-.314
.523
.612
.605
.655
C3
.331
.427
.331
.107
.401
.561
.076
1.000
.623
.088
.242
-.031
.637
-.232
-.532
.031
.206
.317
121
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
-.207
-.192
-.272
-.224
-.218
.140
-.186
-.428
.062
-.218
.332
-.259
.000
-.245
-.076
-.299
C4
.503
-.187
-.302
.309
.193
.503
-.543
.623
1.000
-.032
-.191
-.610
.602
.221
-.654
-.369
-.249
-.197
-.262
-.383
-.492
-.158
-.197
.211
-.206
-.591
.392
.846
-.215
.127
.695
.947
.695
-.347
.796
.000
.947
.618
.896
-.226
.845
-.142
.794
C5
.105
.325
.454
.538
.685
-.105
.105
.088
-.032
1.000
.166
.200
.007
.341
.055
.257
.398
.435
.585
.061
.471
.603
.435
.455
.111
.333
-.448
.620
-.192
.408
.274
.509
.607
-.186
.473
.062
.509
.332
.481
.000
.454
-.076
.555
.289
.269
.381
.314
.102
.326
.261
-.284
.087
.102
.301
.155
.000
.147
-.321
-.298
.715
-.074
.183
.545
.531
.825
-.342
.147
.048
.531
.668
.441
-.117
.416
-.206
.098
.207
-.577
-.578
.100
.218
.560
-.746
-.135
.248
.218
.645
.074
.304
.070
.076
-.021
.620
.115
.204
.523
.655
.280
-.186
.608
-.186
.655
.293
.778
-.365
.734
.229
.768
.237
-.486
-.281
.097
.317
.653
-.489
-.067
.383
.317
.713
.263
.419
.249
-.123
.304

D1
D2
D3
D4
.000
-.405
.069
.454
.392
.681
.213
-.325
.527
.366
.069
-.245
-.295
-.189
.546
.538
.304
.096
.538
.013
.395
-.077
.505
-.280
.158
.867
.069
-.314
.242
-.031
.637
-.232
-.191
-.610
.602
.221
.166
.200
.007
.341
1.000
.366
-.109
-.497
.366
1.000
-.147
-.285
-.109
-.147
1.000
-.137
-.497
-.285
-.137
1.000
.118
.523
-.221
-.259
.161
.543
.169
-.171
.348
.722
.223
-.179
.345
.719
.285
-.252
.392
.681
.299
-.195
-.365
-.033
-.199
.303
.000
.189
-.253
.257
.236
.653
.242
-.024
.345
.719
.285
-.252
.554
.267
.588
-.279
-.491
-.176
-.398
.632
.427
.785
-.293
-.234
.000
-.311
.601
-.253
D5
-.473
.232
.025
-.174
.067
-.149
.523
-.532
-.654
.055
.118
.523
-.221
-.259
1.000
.519
.382
.375
.417
.216
.061
.385
.375
-.031
-.144
.500
-.153
E1
-.272
.760
.408
.000
.314
.102
.612
.031
-.369
.257
.161
.543
.169
-.171
.519
1.000
.763
.802
.760
.000
.167
.671
.802
.486
-.203
.745
-.038
122
G3
G4
G5
H1
H2
H3
H5
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
-.197
.407
-.302
.550
-.284
-.208
-.425
E2
-.238
.920
.495
.128
.486
.147
.605
.206
-.249
.398
.348
.722
.223
-.179
.382
.763
1.000
.972
.920
-.032
.202
.834
.972
.685
-.263
.791
-.071
.972
.583
.910
-.401
.859
-.164
.626
.435
.363
.361
-.383
.341
-.168
.148
E3
-.218
.947
.509
.102
.531
.218
.655
.317
-.197
.435
.345
.719
.285
-.252
.375
.802
.972
1.000
.947
-.126
.134
.864
1.000
.733
-.366
.782
-.081
1.000
.652
.946
-.398
.892
-.150
.671
.345
.278
.176
.000
.166
.000
.304
.719
.193
.726
-.528
.685
.252
.689
.285
.601
.314
.377
.296
-.268
-.079

E4
E5
F1
-.207
-.192
-.272
.846
-.215
.127
.620
-.192
.408
.289
.269
.381
.715
-.074
.183
.207
-.577
-.578
.620
.115
.204
.237
-.486
-.281
-.262
-.383
-.492
.585
.061
.471
.392
-.365
.000
.681
-.033
.189
.299
-.199
-.253
-.195
.303
.257
.417
.216
.061
.760
.000
.167
.920
-.032
.202
.947
-.126
.134
1.000
-.072
.253
-.072
1.000
.707
.253
.707
1.000
.881
-.043
.214
.947
-.126
.134
.782
-.243
.057
-.347
.682
.685
.712
.039
.331
-.115
-.322
-.417
.947
-.126
.134
.618
-.237
-.144
.896
.064
.272
-.453
-.211
-.186
.845
.061
.257
-.142
-.132
-.187
.556
.074
.314
-.252
-.006
-.221
-.191
-.319
-.168
-.389
.375
-.074
.390
-.546
.368
.017
.258
.802
.455
.839
-.373
.685
-.187
.575
F2
-.224
.695
.274
.314
.545
.100
.523
.097
-.158
.603
.236
.653
.242
-.024
.385
.671
.834
.864
.881
-.043
.214
1.000
.864
.597
-.190
.652
-.291
.864
.495
.806
-.546
.760
-.154
.354
F3
-.218
.947
.509
.102
.531
.218
.655
.317
-.197
.435
.345
.719
.285
-.252
.375
.802
.972
1.000
.947
-.126
.134
.864
1.000
.733
-.366
.782
-.081
1.000
.652
.946
-.398
.892
-.150
.671
F4
.140
.695
.607
.326
.825
.560
.280
.653
.211
.455
.554
.267
.588
-.279
-.031
.486
.685
.733
.782
-.243
.057
.597
.733
1.000
-.548
.350
.182
.733
.813
.638
.000
.602
-.225
.377
123
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
B1
B2
B3
B4
B5
C1
C2
C3
F5
-.186
-.347
-.186
.261
-.342
-.746
-.186
-.489
-.206
.111
-.491
-.176
-.398
.632
-.144
-.203
-.263
-.366
-.347
.682
.685
-.190
-.366
-.548
1.000
-.046
-.358
-.366
-.463
-.228
.000
-.280
-.128
-.103
G1
-.428
.796
.473
-.284
.147
-.135
.608
-.067
-.591
.333
.427
.785
-.293
-.234
.500
.745
.791
.782
.712
.039
.331
.652
.782
.350
-.046
1.000
-.389
.782
.250
.728
-.493
.616
.016
.753
G2
.062
.000
.062
.087
.048
.248
-.186
.383
.392
-.448
.000
-.311
.601
-.253
-.153
-.038
-.071
-.081
-.115
-.322
-.417
-.291
-.081
.182
-.358
-.389
1.000
-.081
.142
-.062
.509
-.058
-.383
-.190
G3
-.218
.947
.509
.102
.531
.218
.655
.317
-.197
.435
.345
.719
.285
-.252
.375
.802
.972
1.000
.947
-.126
.134
.864
1.000
.733
-.366
.782
-.081
1.000
.652
.946
-.398
.892
-.150
.671
G4
.332
.618
.332
.301
.668
.645
.293
.713
.407
.363
.278
.193
.601
-.006
-.074
.455
.583
.652
.618
-.237
-.144
.495
.652
.813
-.463
.250
.142
.652
1.000
.580
.000
.485
-.309
.368

H3
-.076
-.142
-.076
-.321
-.206
.076
.229
-.123
G5
-.259
.896
.481
.155
.441
.074
.778
.263
-.302
.361
.176
.726
.314
-.221
.390
.839
.910
.946
.896
.064
.272
.806
.946
.638
-.228
.728
-.062
.946
.580
1.000
-.406
.943
-.178
.726
H1
.000
-.226
.000
.000
-.117
.304
-.365
.419
.550
-.383
.000
-.528
.377
-.191
-.546
-.373
-.401
-.398
-.453
-.211
-.186
-.546
-.398
.000
.000
-.493
.509
-.398
.000
-.406
1.000
-.383
.000
-.117
H2
-.245
.845
.454
.147
.416
.070
.734
.249
-.284
.341
.166
.685
.296
-.319
.368
.685
.859
.892
.845
.061
.257
.760
.892
.602
-.280
.616
-.058
.892
.485
.943
-.383
1.000
-.168
.685
H5
-.299
.794
.555
-.298
.098
-.021
.768
.304
124
C4
C5
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5
D1
D2
D3
D4
-.208
-.168
.000
.252
-.268
-.168
.017
-.187
-.164
-.150
-.142
-.132
-.187
-.154
-.150
-.225
-.128
.016
-.383
-.150
-.309
-.178
.000
-.168
1.000
.088
Scale Mean if
Item Deleted
77.60
78.00
77.60
78.25
78.20
78.30
78.00
78.85
78.25
77.85
78.50
78.55
78.35
77.85
Item-Total Statistics
Scale
Corrected
Variance if
Item-Total
Item Deleted Correlation
151.516
-.150
132.737
.895
146.042
.583
146.934
.243
137.853
.637
146.537
.239
142.737
.610
143.713
.392
153.145
-.161
144.555
.483
145.105
.316
137.524
.585
143.397
.365
152.766
-.209
-.425
.148
.304
.689
-.079
-.389
.258
.575
.626
.671
.556
.074
.314
.354
.671
.377
-.103
.753
-.190
.671
.368
.726
-.117
.685
.088
1.000
Squared
Multiple
Correlation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Cronbach's
Alpha if Item
Deleted
.918
.907
.914
.916
.911
.916
.913
.915
.924
.914
.916
.912
.915
.920
125
D5
E1
E2
E3
E4
E5
F1
F2
F3
F4
F5
G1
G2
G3
G4
G5
H1
H2
H3
H5
78.45
77.90
78.15
78.10
78.00
77.75
77.90
77.95
78.10
78.20
77.95
78.45
78.40
78.10
78.65
78.20
78.50
77.85
77.55
78.20
146.576
141.463
130.134
129.253
131.895
151.461
147.884
137.103
129.253
135.958
157.629
138.471
151.095
129.253
134.871
130.379
154.368
140.450
151.629
138.168
.206
.732
.914
.951
.942
-.108
.191
.803
.951
.818
-.378
.640
-.068
.951
.730
.913
-.302
.844
-.219
.619
Scale Statistics
Std.
Mean Variance Deviation N of Items
80.50 150.474
12.267
34
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.917
.911
.906
.905
.906
.919
.917
.909
.905
.909
.926
.911
.919
.905
.909
.906
.922
.910
.918
.911
126
Appendix C
127
NON-PARAMETRIC KRUSKALL-WALLIS H TEST RESULTS

*Nonparametric Tests: Independent Samples.
NPTESTS
/INDEPENDENT TEST (b1 b2 b3 b4 b5 deluveryofgoods c1 c2 c3 c4 c5
riskoflossdamagesandconfusions d1 d2 d3 d4 d5 effortstosell e1 e2 e3 e4 e5
paymentsalesandcommission f1 f2 f3 f4 f5 returnofproducts g1 g2 g3 g4 g5 termination h1 h2 h3
h4 h5 legalitems overall) GROUP (yoo) KRUSKAL_WALLIS(COMPARE=PAIRWISE)
/MISSING SCOPE=ANALYSIS USERMISSING=EXCLUDE
/CRITERIA ALPHA=0.05 CILEVEL=95.
Nonparametric Tests
Notes
Output Created
28-APR-2016 14:49:03
Comments
Data
Active Dataset
Filter
C:\Users\Allaniah\Documents\thesisultimateresu
lt.sav
DataSet0
<none>
Input
Weight
Split File
<none>
<none>
10
N of Rows in Working Data File

NPTESTS
/INDEPENDENT TEST (b1 b2 b3 b4 b5
deluveryofgoods c1 c2 c3 c4 c5
riskoflossdamagesandconfusions d1 d2 d3 d4
d5 effortstosell e1 e2 e3 e4 e5
paymentsalesandcommission f1 f2 f3 f4 f5
returnofproducts g1 g2 g3 g4 g5 termination h1
Syntax
h2 h3 h4 h5 legalitems overall) GROUP (yoo)

KRUSKAL_WALLIS(COMPARE=PAIRWISE)
/MISSING SCOPE=ANALYSIS
USERMISSING=EXCLUDE
/CRITERIA ALPHA=0.05 CILEVEL=95.
Resources
Processor Time
00:00:00.33
Elapsed Time
00:00:00.32
128
129
130
DESCRIPTIVES VARIABLES=b1 b2 b3 b4 b5 deluveryofgoods c1 c2 c3 c4 c5

riskoflossdamagesandconfusions
d1 d2 d3 d4 d5 effortstosell e1 e2 e3 e4 e5 paymentsalesandcommission f1 f2 f3 f4 f5
returnofproducts g1 g2 g3 g4 g5 termination h1 h2 h3 h4 h5 legalitems overall
/STATISTICS=MEAN STDDEV MIN MAX.
Descriptive
Notes
Output Created
28-APR-2016 14:49:55
Comments
Data
Input
C:\Users\Allaniah\Documents
\thesisultimateresult.sav
Active Dataset
DataSet0
Filter
<none>
Weight
<none>
Split File
<none>
10
Data File
Missing Value
Handling
User defined missing values

are treated as missing.
131
All non-missing data are
Cases Used
used.
DESCRIPTIVES
VARIABLES=b1 b2 b3 b4 b5
deluveryofgoods c1 c2 c3 c4
c5
riskoflossdamagesandconfusi
ons
d1 d2 d3 d4 d5 effortstosell
Syntax
e1 e2 e3 e4 e5
paymentsalesandcommission
f1 f2 f3 f4 f5
returnofproducts g1 g2 g3
g4 g5 termination h1 h2 h3
h4 h5 legalitems overall
/STATISTICS=MEAN
STDDEV MIN MAX.
Resources
Processor Time
00:00:00.02
Elapsed Time
00:00:00.02
Descriptive Statistics
N
Minimum
Maximum
Mean
Std.
Deviation
b1
10
2.00
3.00
2.8000
.42164
b2
10
2.00
3.00
2.9000
.31623
b3
10
3.00
3.00
3.0000
.00000
b4
10
2.00
3.00
2.7000
.48305
b5
10
2.00
3.00
2.7000
.48305
deluveryofgoods
10
2.40
3.00
2.8200
.19889
c1
10
1.00
3.00
2.7000
.67495
c2
10
2.00
3.00
2.9000
.31623
c3
10
1.00
3.00
2.1000
.87560
c4
10
1.00
3.00
2.5000
.84984
c5
10
2.00
3.00
2.9000
.31623
riskoflossdamagesan
10
1.80
3.00
2.6200
.42635
d1
10
2.00
3.00
2.5000
.52705
d2
10
1.00
3.00
1.9000
.73786
d3
10
1.00
3.00
2.3000
.82327
dconfusions
132
d4
10
2.00
3.00
2.8000
.42164
d5
10
2.00
3.00
2.6000
.51640
effortstosell
10
2.00
2.80
2.4200
.25734
e1
10
3.00
3.00
3.0000
.00000
e2
10
2.00
3.00
2.8000
.42164
e3
10
3.00
3.00
3.0000
.00000
e4
10
3.00
3.00
3.0000
.00000
e5
10
2.00
3.00
2.9000
.31623
paymentsalesandco
10
2.60
3.00
2.9400
.13499
f1
10
2.00
3.00
2.8000
.42164
f2
10
3.00
3.00
3.0000
.00000
f3
10
3.00
3.00
3.0000
.00000
f4
10
2.00
3.00
2.7000
.48305
f5
10
1.00
3.00
1.6000
.96609
returnofproducts
10
2.20
3.00
2.6200
.22010
mmission
N
Minimum
Maximum
Mean
Std.
Deviation
g1
10
2.00
3.00
2.8000
.42164
g2
10
2.00
3.00
2.5000
.52705
g3
10
2.00
3.00
2.9000
.31623
g4
10
1.00
3.00
2.5000
.84984
g5
10
2.00
3.00
2.9000
.31623
termination
10
2.00
3.00
2.7200
.31552
h1
10
1.00
3.00
2.0000
.81650
h2
10
2.00
3.00
2.9000
.31623
h3
10
2.00
3.00
2.9000
.31623
h4
10
2.00
3.00
2.8000
.42164
h5
10
2.00
3.00
2.4000
.51640
legalitems
10
1.80
3.00
2.6000
.32660
overall
10
2.43
2.89
2.6771
.14572
Valid N (listwise)
10
SORT CASES BY yoo.

SPLIT FILE LAYERED BY yoo.
DESCRIPTIVES VARIABLES=b1 b2 b3 b4 b5 deluveryofgoods c1 c2 c3 c4 c5
riskoflossdamagesandconfusions
d1 d2 d3 d4 d5 effortstosell e1 e2 e3 e4 e5 paymentsalesandcommission f1 f2 f3 f4 f5
133
returnofproducts g1 g2 g3 g4 g5 termination h1 h2 h3 h4 h5 legalitems overall

/STATISTICS=MEAN STDDEV MIN MAX.
Descriptives
Notes
Output Created
28-APR-2016 14:50:19
Comments
C:\Users\Allaniah\Documents
Data
Input
\thesisultimateresult.sav
Active Dataset
DataSet0
Filter
<none>
Weight
<none>
Split File
yoo
10
Data File
Missing Value
Handling
Cases Used
User defined missing values

All non-missing data are
used.
DESCRIPTIVES
VARIABLES=b1 b2 b3 b4 b5
deluveryofgoods c1 c2 c3 c4
c5
riskoflossdamagesandconfusi
ons
d1 d2 d3 d4 d5 effortstosell
Syntax
e1 e2 e3 e4 e5
paymentsalesandcommission
f1 f2 f3 f4 f5
returnofproducts g1 g2 g3
g4 g5 termination h1 h2 h3
h4 h5 legalitems overall
/STATISTICS=MEAN
STDDEV MIN MAX.
Resources
Processor Time
00:00:00.05
Elapsed Time
00:00:00.04
yoo
Minimum
Maximum
Mean
Std.
Deviation
134
b1
2.00
3.00
2.5000
.70711
b2
3.00
3.00
3.0000
.00000
b3
3.00
3.00
3.0000
.00000
b4
2.00
2.00
2.0000
.00000
b5
2.00
3.00
2.5000
.70711
deluveryofgoods
2.40
2.80
2.6000
.28284
c1
1.00
2.00
1.5000
.70711
c2
3.00
3.00
3.0000
.00000
c3
1.00
1.00
1.0000
.00000
c4
1.00
1.00
1.0000
.00000
c5
3.00
3.00
3.0000
.00000
riskoflossdamagesan
1.80
2.00
1.9000
.14142
d1
2.00
2.00
2.0000
.00000
d2
3.00
3.00
3.0000
.00000
d3
1.00
2.00
1.5000
.70711
d4
2.00
3.00
2.5000
.70711
d5
3.00
3.00
3.0000
.00000
effortstosell
2.40
2.40
2.4000
.00000
e1
3.00
3.00
3.0000
.00000
e2
3.00
3.00
3.0000
.00000
e3
3.00
3.00
3.0000
.00000
e4
3.00
3.00
3.0000
.00000
e5
3.00
3.00
3.0000
.00000
paymentsalesandco
3.00
3.00
3.0000
.00000
f1
3.00
3.00
3.0000
.00000
f2
3.00
3.00
3.0000
.00000
f3
3.00
3.00
3.0000
.00000
f4
2.00
2.00
2.0000
.00000
f5
3.00
3.00
3.0000
.00000
returnofproducts
2.80
2.80
2.8000
.00000
g1
3.00
3.00
3.0000
.00000
dconfusions
1-5 years
mmission
135
yoo
Minimum
Maximum
Mean
Std.
Deviation
1-5 years
6-10 years
g2
2.00
2.00
2.0000
.00000
g3
3.00
3.00
3.0000
.00000
g4
1.00
3.00
2.0000
1.41421
g5
3.00
3.00
3.0000
.00000
termination
2.40
2.80
2.6000
.28284
h1
1.00
2.00
1.5000
.70711
h2
3.00
3.00
3.0000
.00000
h3
3.00
3.00
3.0000
.00000
h4
3.00
3.00
3.0000
.00000
h5
3.00
3.00
3.0000
.00000
legalitems
2.60
2.80
2.7000
.14142
overall
2.54
2.60
2.5714
.04041
Valid N (listwise)
b1
2.00
3.00
2.7500
.50000
b2
2.00
3.00
2.7500
.50000
b3
3.00
3.00
3.0000
.00000
b4
2.00
3.00
2.7500
.50000
b5
2.00
3.00
2.7500
.50000
deluveryofgoods
2.60
3.00
2.8000
.16330
c1
3.00
3.00
3.0000
.00000
c2
2.00
3.00
2.7500
.50000
c3
2.00
3.00
2.5000
.57735
c4
2.00
3.00
2.7500
.50000
c5
2.00
3.00
2.7500
.50000
riskoflossdamagesan
2.40
3.00
2.7500
.25166
d1
2.00
3.00
2.5000
.57735
d2
1.00
2.00
1.5000
.57735
d3
2.00
3.00
2.5000
.57735
d4
2.00
3.00
2.7500
.50000
d5
2.00
3.00
2.2500
.50000
effortstosell
2.00
2.60
2.3000
.25820
e1
3.00
3.00
3.0000
.00000
dconfusions
136
yoo
Minimum
Maximum
Mean
Std.
Deviation
6-10 years
e2
2.00
3.00
2.5000
.57735
e3
3.00
3.00
3.0000
.00000
e4
3.00
3.00
3.0000
.00000
e5
2.00
3.00
2.7500
.50000
paymentsalesandco
2.60
3.00
2.8500
.19149
f1
2.00
3.00
2.5000
.57735
f2
3.00
3.00
3.0000
.00000
f3
3.00
3.00
3.0000
.00000
f4
2.00
3.00
2.7500
.50000
f5
1.00
1.00
1.0000
.00000
returnofproducts
2.20
2.60
2.4500
.19149
g1
2.00
3.00
2.7500
.50000
g2
2.00
3.00
2.5000
.57735
g3
2.00
3.00
2.7500
.50000
g4
1.00
3.00
2.5000
1.00000
g5
2.00
3.00
2.7500
.50000
termination
2.00
3.00
2.6500
.44347
h1
1.00
3.00
2.0000
.81650
h2
2.00
3.00
2.7500
.50000
h3
2.00
3.00
2.7500
.50000
h4
2.00
3.00
2.5000
.57735
h5
2.00
2.00
2.0000
.00000
legalitems
1.80
2.80
2.4000
.43205
overall
2.43
2.77
2.6000
.14190
Valid N (listwise)
b1
3.00
3.00
3.0000
.00000
b2
3.00
3.00
3.0000
.00000
b3
3.00
3.00
3.0000
.00000
b4
3.00
3.00
3.0000
.00000
b5
2.00
3.00
2.7500
.50000
deluveryofgoods
2.80
3.00
2.9500
.10000
c1
3.00
3.00
3.0000
.00000
mmission
11 years and above
137
yoo
Minimum
Maximum
Mean
Std.
Deviation
11 years and above
c2
3.00
3.00
3.0000
.00000
c3
1.00
3.00
2.2500
.95743
c4
3.00
3.00
3.0000
.00000
c5
3.00
3.00
3.0000
.00000
riskoflossdamagesan
2.60
3.00
2.8500
.19149
d1
2.00
3.00
2.7500
.50000
d2
1.00
2.00
1.7500
.50000
d3
1.00
3.00
2.5000
1.00000
d4
3.00
3.00
3.0000
.00000
d5
2.00
3.00
2.7500
.50000
effortstosell
2.20
2.80
2.5500
.30000
e1
3.00
3.00
3.0000
.00000
e2
3.00
3.00
3.0000
.00000
e3
3.00
3.00
3.0000
.00000
e4
3.00
3.00
3.0000
.00000
e5
3.00
3.00
3.0000
.00000
paymentsalesandco
3.00
3.00
3.0000
.00000
f1
3.00
3.00
3.0000
.00000
f2
3.00
3.00
3.0000
.00000
f3
3.00
3.00
3.0000
.00000
f4
3.00
3.00
3.0000
.00000
f5
1.00
3.00
1.5000
1.00000
returnofproducts
2.60
3.00
2.7000
.20000
g1
2.00
3.00
2.7500
.50000
g2
2.00
3.00
2.7500
.50000
g3
3.00
3.00
3.0000
.00000
g4
2.00
3.00
2.7500
.50000
g5
3.00
3.00
3.0000
.00000
termination
2.60
3.00
2.8500
.19149
h1
1.00
3.00
2.2500
.95743
h2
3.00
3.00
3.0000
.00000
dconfusions
mmission
138
yoo
Minimum
Maximum
Mean
Std.
Deviation
11 years and above
h3
3.00
3.00
3.0000
.00000
h4
3.00
3.00
3.0000
.00000
h5
2.00
3.00
2.5000
.57735
legalitems
2.60
3.00
2.7500
.19149
overall
2.71
2.89
2.8071
.07143
Valid N (listwise)
NEW FILE.
DATASET NAME DataSet2 WINDOW=FRONT.
ONEWAY c1 BY yearsofoperation
/MISSING ANALYSIS
/POSTHOC=LSD ALPHA(0.05).
Oneway
Notes
Output Created
28-APR-2016 14:53:24
Comments
Input
Active Dataset
DataSet2
Filter
<none>
Weight
<none>
Split File
<none>
10
Data File
Missing Value
Handling
User-defined missing values

Statistics for each analysis
Cases Used
are based on cases with no

missing data for any variable
in the analysis.
ONEWAY c1 BY
yearsofoperation
Syntax
/MISSING ANALYSIS
/POSTHOC=LSD
ALPHA(0.05).
Resources
Processor Time
00:00:00.02
Elapsed Time
00:00:00.02
139
[DataSet2]
ANOVA
c1
Sum of
df
Mean
Squares
Between Groups
Within Groups
Total
Sig.
Square
3.600
1.800
.500
.071
4.100
25.200
.001
Post Hoc Tests

Multiple Comparisons
Dependent Variable: c1
LSD
(I) yearsofoperation
1-5 years
6-10 years
11 years and above
(J) yearsofoperation
6-10 years
11 years and above
1-5 years
11 years and above
1-5 years
6-10 years
Mean
Std. Error
Sig.
Difference
Lower
Upper
(I-J)
Bound
Bound
-1.50000*
.23146
.000
-2.0473
-.9527
.23146
.000
-2.0473
-.9527
1.50000
.23146
.000
.9527
2.0473
.00000
.18898
1.000
-.4469
.4469
1.50000
.23146
.000
.9527
2.0473
.00000
.18898
1.000
-.4469
.4469
-1.50000
*. The mean difference is significant at the 0.05 level.
ONEWAY c4 BY yearsofoperation
/MISSING ANALYSIS
/POSTHOC=LSD ALPHA(0.05).
Oneway
Notes
Output Created
28-APR-2016 14:54:32
Comments
Input
Active Dataset
95% Confidence Interval
DataSet2
140
Filter
<none>
Weight
<none>
Split File
<none>
10
Data File
Missing Value
Handling
User-defined missing values

Statistics for each analysis
are based on cases with no
Cases Used
missing data for any variable

in the analysis.
ONEWAY c4 BY
yearsofoperation
Syntax
/MISSING ANALYSIS
/POSTHOC=LSD
ALPHA(0.05).
Resources
Processor Time
00:00:00.00
Elapsed Time
00:00:00.00
ANOVA
c4
Sum of
df
Mean
Squares
Between Groups
Within Groups
Total
Sig.
Square
5.750
2.875
.750
.107
6.500
26.833
.001
Post Hoc Tests

Multiple Comparisons
Dependent Variable: c4
LSD
(I) yearsofoperation
1-5 years
6-10 years
11 years and above
(J) yearsofoperation
6-10 years
11 years and above
1-5 years
11 years and above
1-5 years
Mean
Std. Error
Sig.
95% Confidence Interval
Difference
Lower
Upper
(I-J)
Bound
Bound
-1.75000*
.28347
.000
-2.4203
-1.0797
.28347
.000
-2.6703
-1.3297
1.75000
.28347
.000
1.0797
2.4203
-.25000
.23146
.316
-.7973
.2973
.28347
.000
1.3297
2.6703
-2.00000
2.00000
141
6-10 years
.25000
.23146
.316
*. The mean difference is significant at the 0.05 level.
Appendix D
-.2973
.7973
142
LETTER OF PERMISSION TO CONDUCT A STUDY
February 23, 2016

Name of the Representative
Position
Name of the University
Address of the University
RE: Permission to Conduct Research Study
Dear Mr/Ms/Mrs/Prof/Dr. X:
In behalf of my group mates, I am writing to request permission to conduct a research study at
your institution. We are currently enrolled in the Bachelor of Science in Accountancy at Manila
Tytana Colleges, Pasay City, and am in the process of writing our undergraduate thesis. The
study is entitled The Level of Adherence of Selected University Bookstores in National Capital
Region to the Prescribed Consignment Practices: A Comparative Study.
We hope that the school administration will allow me to do a survey at the institutions bookstore
and Finance department to anonymously complete a 6-page questionnaire (copy enclosed). Due
to the nature of the study, we might observe existing accounting procedure and internal control
procedures, and expect transparency.
Simultaneous to observation, the questionnaires will be accomplished by the respondents which
are four qualified staff of either the bookstore or Finance department with both knowledge on the
existing consignment accounting procedure and internal control practices of the institution.
The survey results will be pooled for the thesis project and individual results of this study will
remain absolutely confidential and anonymous. Should this study be published, only pooled
results will be documented. No costs will be incurred by either your institution or the individual
participants.
Your approval to conduct this study will be greatly appreciated. We will follow up via telephone
call and would be happy to answer any questions or concerns that you may have at that time. You
may contact us at our email address: kurtvallada@yahoo.com.
143
If you agree, kindly sign below and return the signed form in the enclosed self-addressed
envelope. Alternatively, kindly submit a signed letter of permission on your institutions
letterhead acknowledging your consent and permission for us to conduct this study at your
institution.
Sincerely yours,
Begas, Dan Paul C.
Member
Member
Member
Maca-alin. Allaniah H.
Member
Red Christian L. Palustre
Group Leader
Noted by:
Dr. Maria Veronica M. Binuya

Dean, College of Accountancy and Management
RLP: cbc
Enclosures: Prescribed Consignment Practices Questionnaire
144
Appendix E
145
146
Appendix F
147
GANTT CHART
Research Title
: The Level of Adherence of Selected University Bookstores in National

Capital Region on the Prescribed Consignment Practices: A
Comparative
Researchers
Study
: Begas, Dan Paul C.
Period Covered
: October 2015 February 2016
ACTIVITIES
I. Research of related
literatures and studies
II. Choosing a topic
III. Title proposal
IV. Writing of draft of
chapters, 1, 2 and 3
V. Proposal defense
VI. Change of Study
VII. Second Proposal Defense
VIII. Referendum
IX. Validator issues/signs a
certificate
of
validation
X. Reliability testing
XI. Data collection period
Octobe
r
3
4
November December
January
February
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
148
XII. Data analysis period

XIII. Writing of draft of final
research paper
XIV. Submission of final
paper
LINE ITEM BUDGET
Research Title
: The Level of Adherence of Selected University Bookstores in National

Capital Region on the Prescribed Consignment Practices: A
Comparative
Researchers
Study
: Begas, Dan Paul C.
Period Covered
: October 2015 May 2016
Items
Transportation Expenses
Communication Expenses
(Cellphone Load, Internet prepaid etc.)
Supplies and Materials Expenses
a. Bond Papers
b. Printer inks
c. Token for respondents
Professional Expenses
a. Token for validators
b. Token for panel members
c. Token for lawyer
Snacks
Amount
Php 1500
Php 200
Php 2500
Php 400
Php 1000
Free
Php 1500
Php 2000
Php 750
149
TotalPhp 9850
Appendix G
150
One of the university bookstore sampled
151
Personnel of one of the university bookstore sampled.
Appendix H
152
CURRICULUM VITAE
Dan Paul C. Begas

PERSONAL BACKGROUND
Address
Age
Date of Birth
Place of Birth
Civil Status
Citizenship
Religion
E-mail Address
Contact No.
: 157 P-11 Brgy. South Daanghari, Bagong Tanyag, Taguig

City
: 19 y/o
: September 6, 1996
: Las Pias City
: Single
: Filipino
: Roman Catholic
: begasdanpaul@gmail.com
: 09066723870
EDUCATIONAL BACKGROUND
YEAR GRADUATED
153
TERTIARY
Manila Tytana Colleges

2013-present
Pres. Diosdado Macapagal Rd., Roxas Blvd., Pasay City
SECONDARY
Olivarez College
Paranaque City
2013
PRIMARY
San Antonio Elementary School-Silverio Annex

Paranaque City
AWARDS AND HONORS
2009
DATE RECEIVED
Deans Lister, 1st sem (SY 2013-14)

2014
Salutatorian
Olivarez College
2013
Leadership Awardee
Olivarez College
2013
AFFILIATIONS
National Federation of Junior Philippine Institute of Accountants

Active Member (2013-present)
Junior Philippine Institute of Accountants Manila Tytana Colleges

Scholars Guild Manila Tytana Colleges

The Centerpost Manila Tytana Colleges

Contributing Writer
154
INTERESTS
Reading novels and fictional books
Reading motivational hand books and quotes
Watching movies and series
Listening to popular music
Playing different sports
CURRICULUM VITAE

PERSONAL BACKGROUND
Address
Email
Mobile no.
Date of Birth
Place of Birth
Citizenship
Sex
Civil Status
Languages Spoken
:Gov. Pugeda St., Rosario, Cavite

:coronamico@gmail.com
:09261344384
:October 15, 1996
: Rosario, Cavite
: Filipino
: Male
: Single
: English and Filipino
TERTIARY
YEAR GRADUATED
155
2013-present
SECONDARY
Hermano Miguel Integrated School
2013
PRIMARY
Cognoscere Academy
2009
AWARDS AND HONORS
Deans Lister Awardee

Salutatorian
Hermano Miguel Integrated School
DATE RECEIVED
February 19, 2016
2013
AFFILIATIONS


Scholars Guild
INTERESTS
Watching movies
Reading inspirational novels
Listening to different genres of music
156
CURRICULUM VITAE
Christine Angela B. Cruz

PERSONAL BACKGROUND
Address
Age
Date of Birth
Place of Birth
Civil Status
Citizenship
Religion
: 2759 Sandejas St. Tambo, Paraaque City

: 19 y/o
: November 20, 1996
: Manila
: Single
: Filipino
: Roman Catholic
157
YEAR GRADUATED
TERTIARY

2013-present
SECONDARY
Brainshire Science School

900 J. Gabriel Street, Baclaran, Paranaque
2013
PRIMARY
St. Andrews School

475 Quirino Ave, Paraaque, 1700 Metro Manila
AWARDS AND HONORS
Deans Lister Awardee

Salutatorian
Brainshire Science School
2009
DATE RECEIVED
February 19, 2016
2013
AFFILIATIONS


Scholars Guild
INTERESTS
158
Watching American and Korean series and movies
Reading inspirational novels
Listening to different genres of music
159
CURRICULUM VITAE
PERSONAL BACKGROUND
Address
Age
Date of Birth
Place of Birth
Civil Status
Citizenship
Religion
: Blk. 177 Lot 10 IRM Rd., Maharlika Vill., Tauig City

: 19 y/o
: March 28, 1997
: Quiapo, Manila
: Single
: Filipino
: Islam
YEAR GRADUATED
TERTIARY

2013-present
SECONDARY
Paulo Scholastic Chastity de Montessori Academy

Betterlivig, Paraaque City
2013
PRIMARY
North-South Islamic Academy

Maharlika Vill. FTI, Taguig City
2009
160
AWARDS AND HONORS
4th Honorable Mention

Best Platoon Leader in CAT

Salutatorian
North-South Islamic Academy
DATE RECEIVED
March 2013
March 2013
2009
AFFILIATIONS


INTERESTS
Engaging in different kinds of sports,
Watching anime, K-dramas, movies, and American series
Reading fiction, romance books, and manga,
And listening to any kind of music.
161
CURRICULUM VITAE

PERSONAL BACKGROUND
Address
Age
Date of Birth
Place of Birth
Civil Status
Citizenship
Religion
: Lot 4, Block 1-D, Phase 1, Carenville Subdivision, Magdalo,

Kawit, Cavite
: 19 y/o
: December 22, 1996
: Noveleta, Cavite
: Single
: Filipino
: Roman Catholic
YEAR GRADUATED
TERTIARY

2013-present
SECONDARY
Cavite National High School

Chief E. Martin St., Caridad, Cavite City
PRIMARY
2013
162
Ambrocio S. Robles Mem. Elementary School

San Jose II, Noveleta, Cavite
AWARDS AND HONORS
2009
DATE RECEIVED
Chairman Circle Awardee

February 19, 2016& 2015
9th Honorable Mention

Cavite National High School
March 2013
Salutatorian
Ambrocio S. Robles Memorial Elementary School
March 2009
AFFILIATIONS


Scholars Guild
INTERESTS
Engaging in different kinds of sports
Reading physics books and manuals
Watching play at theatre
Watching movies during Saturday night
163

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1

THE LEVEL OF ADHERENCE OF SELECTED

DAN PAUL C. BEGAS

BACHELOR OF SCIENCE IN ACCOUNTANCY

MANILA TYTANA COLLEGES

PROF. MELZIEL ANDAG EMBA, CPA

PROBLEM AND ITS BACKGROUND

Background of the Study

Statement of the Problem

Significance of the Study

Scope and Delimitation

REVIEW OF RELATED LITERATURE AND STUDIES

Relevance to the Present Study

METHOD AND PROCEDURE

Sample and Sampling Technique

Research Instrument and Technique

Data Gathering Procedure

Statistical Treatment of Data

PRESENTATION, ANALYSIS AND INTERPRETATION

SUMMARY OF FINDINGS, CONCLUSION AND

List of universities that Met the Criteria of the Researchers

Pointing system to be used to measure adherence

Table Format for Illustrating Frequency and Percentage of

Frequency and Percentage Distribution of The Respondents

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Level of Adherence of Selected University Bookstores to the

Differences in the Level of Adherence to the Prescribed Delivery

Differences in the Level of Adherence to the Prescribed Risk of

Follow-up Test on the Differences in the Level of Adherence of

Follow-up Test on the Differences in the Level of Adherence of

Differences in the Level of Adherence to the Prescribed Efforts to

Differences in the Level of Adherence to the Prescribed Payment,

Differences in the Level of Adherence to the Prescribed Return of

Differences in the Level of Adherence to the Prescribed Termination

Differences in the Level of Adherence to the Prescribed Legal Items

Differences in the Level of Adherence to the Prescribed Consignment

2 Data Gathering Procedure Flow Diagram

Recommendations and Suggestions of the Panel Members

Prescribed Consignment Accounting Questionnaire, Certificates

Kruskall-Wallis H Test Results

Gantt chart and Line Item Budget

operational effectiveness and efficiency,

Prescribed Consignment Practices

Figure 1.The research paradigm of the research.

ensure that prescribed practices are being adhered perpetually.

Scope and Delimitations

With no money invested, your

operational advantages, streamlining production times, while simultaneously reducing the

system. Consignment inventory is a mechanism of supply chain management. Adopting

Relevance to the Present Study

Sample and Sampling Technique

Recto Ave, 395, Manila, 1008

Pearl Dr, San Antonio, Pasig,

Taft Ave, Malate, Metro

Table 1. List of universities that met the criteria of the researchers

Research Instrument and Technique

Figure 2. Data gathering procedure flow diagram