In Most Companies the Flow of Costs Related to Inventory

question 55

Multiple Choice

In most companies the flow of costs related to inventory does not match the physical flow of the goods.All of the following are reasons why the cost flow and physical flow may differ, except?

• A)It is not cost effective.
• B)It is not physically possible.
• C)It does not provide good internal control.
• D)None of the above

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.