Which Statement Concerning Inventory Is Not True

question 26

Multiple Choice

Which statement concerning inventory is not true?

• A) All categories of inventory should always be subject to the same degree of control.
• B) Electronic point of sale systems greatly assist in the management of inventory.
• C) Regular physical stocktakes are part of the efficient management of inventory.
• D) None of the above, i.e. all are true statements.

---

Definitions:

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through the process of diversification, as it's not correlated to market risk.

Employees

Individuals who are hired by a company or organization to perform work in exchange for compensation.

Systematic Risk

The potential for loss inherent in the entire market or an entire market segment, also known as market risk or non-diversifiable risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk level compared to the market average.