Which of the Following Is an Example of Lag Information

question 21

Multiple Choice

Which of the following is an example of lag information?

• A) Measurement of faulty units in response to a recently implemented inventory method
• B) Measurement of price sensitivity of customers in a given city
• C) Measurement of rate of purchasing propensity following exposure to advertising
• D) None of the answers is correct.

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Definitions:

Physical Inventory

A detailed listing of merchandise on hand.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory Account

An account that records the value of goods that a retailer, wholesaler, or distributor has available for sale to customers at any given time.

Specific Identification

An inventory costing method where individual costs are assigned to specific items of inventory, often used for unique or high-value items.