A Formal Review and Reporting of Obsolete, Slow- Moving, Damaged

question 106

Multiple Choice

A formal review and reporting of obsolete, slow- moving, damaged and overstated inventory items:

• A) involves reviewing perpetual inventory master files for inventory turnover and holding discussions with engineering or production personnel.
• B) is an internal control designed to prevent the overstatement of inventory through the inclusion of obsolete inventory.
• C) should be done by a competent employee.
• D) All of the above are correct.

---

Definitions:

Sufficient Money

Sufficient Money refers to having enough financial resources to meet one’s needs, obligations, and goals without experiencing financial stress.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices.

Product-related Mistakes

Errors that occur in the development, design, or manufacturing of products.

Labour Standards

Regulations concerning the working conditions, rights of workers, and employment practices.