The Goal of a Physical Inventory Reconciliation Is to

question 102

Multiple Choice

The goal of a physical inventory reconciliation is to

• A)Determine the quantity of inventory sold.
• B)Compare the physical count with the perpetual records.
• C)Compare the physical count with the periodic records.
• D)Determine the quantity of inventory in process.

---

Definitions:

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods or services to be offered for consumption or use by others.

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output, representing the cost per unit including both fixed and variable costs.

Monopoly Power

The exclusive ability of a company to determine the price and production level of a product or service in the market.

Marginal Revenue

The gain in revenue resulting from the sale of one extra unit of a good or service.