Asked by
DERRICK OBENG
on Oct 28, 2024Verified
Of the following,which is not a reason for having controls to safeguard inventories?
A) Protect inventory items from theft.
B) Avoid stock-outs from not having enough inventory on hand.
C) Reduce costs of maintaining the LIFO Reserve.
D) Keep track of overstocked items.
Safeguard Inventories
Actions or strategies implemented to protect and manage a company's inventory from loss, theft, or damage.
LIFO Reserve
The difference between the cost of inventory calculated using the Last-In, First-Out method and the FIFO (First-In, First-Out) method.
Stock-Outs
Occurrences when items are not in stock and cannot fulfill customer demand, often leading to potential sales loss.
- Comprehend the basic concepts of inventory management and control mechanisms.
Verified Answer
KS
Learning Objectives
- Comprehend the basic concepts of inventory management and control mechanisms.