At the Year-End Inventory Count, If Goods in Transit Are

question 167

Multiple Choice

At the year-end inventory count, if goods in transit are shipped FOB shipping point, they should be included in the inventory count of:

• A)the seller.
• B)the buyer.
• C)the shipping company.
• D)both the seller and the buyer.

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Definitions:

Lean Business Model

A strategic approach that emphasizes creating more value for customers with fewer resources by optimizing business processes.

Days' Payable Outstanding

A financial ratio that indicates the average time (in days) that a company takes to pay its suppliers and creditors.

Lean Manufacturers

Companies that adopt lean manufacturing techniques to maximize customer value while minimizing waste, thus achieving higher efficiency in production.

Traditional Processes

Conventional methods and procedures that organizations follow to conduct business operations, often characterized by a linear, step-by-step approach.