Of the Following,which Is Not a Reason for Having Controls

question 115

Multiple Choice

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.

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Definitions:

Merit-Pay Plan

A Merit-Pay Plan is a compensation strategy that rewards employees based on their performance and achievements, often used to incentivize higher productivity.

Profit-Sharing Pool

A financial arrangement where a portion of a company's profits is distributed to its employees.

Productivity Improvements

Enhancements in the efficiency and effectiveness of work processes, leading to higher output or quality with the same or lower input.

Annual Salary Increases

Regular, incremental adjustments to an employee's base pay, typically conducted on a yearly basis to keep up with market rates, inflation, or to reward performance.