Which of the Following Is Not an Example for Safeguarding

question 48

Multiple Choice

Which of the following is not an example for safeguarding inventory?

• A) Storing inventory in restricted areas.
• B) Physical devices such as two-way mirrors, cameras, and alarms.
• C) Matching receiving documents, purchase orders, and vendor's invoice.
• D) Returning inventory that is defective or broken.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales level at which a company breaks even, providing a buffer against losses.

Unit Selling Price

The amount of money charged for one unit of a product or service.

Break-even Point

The point at which total costs equal total revenue, meaning no profit or loss is generated.

Manufacturing Margin

The difference between the cost of manufacturing the product and the price it is sold for, indicating the profitability of production.