Taking a Physical Count of Inventory

question 67

Multiple Choice

Taking a physical count of inventory

• A) is not necessary when a periodic inventory system is used
• B) should be done near year-end
• C) has no internal control relevance
• D) is not necessary when a perpetual inventory system is used

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Definitions:

Centered Moving Averages

A technique used to smooth out short-term fluctuations in time series data and highlight longer-term trends by averaging data points centered around each point.

Quarter

One-fourth of a year, often used in financial and business contexts to divide the fiscal or calendar year for reporting purposes.

Mean Absolute Deviation

The average of the absolute differences between each data point in a set and the mean of that set, measuring variability.

Residuals

The deviation of true observations from the predictions made by a simulation or computational model.