Which of the Following Statements Regarding Shrinkage Is Not True

question 99

Multiple Choice

Which of the following statements regarding shrinkage is not true?

• A)Perpetual inventory systems can help managers detect shrinkage.
• B)Shrinkage is another term for inventory loss due to theft,error,or fraud.
• C)Shrinkage is detected by comparing the balance in the inventory ledger account and the results of the physical inventory count.
• D)It is easier to detect shrinkage in a periodic inventory system than in a perpetual inventory system.

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Definitions:

Bioecological Model

A theoretical model that explores the complex interactions between individuals and their environment, highlighting the multiple layers of influence on human development.

Individual

A single, distinct person distinguished from others by unique characteristics, thoughts, feelings, and actions.

Family

A social unit or group of people related by blood (consanguinity), marriage (affinity), or adoption, bound by shared values, traditions, culture, and love, often living together and supporting one another.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others.