Qualls Department Store Counted Some of Its Inventory Items Twice

question 118

Multiple Choice

Qualls Department Store counted some of its inventory items twice. As a result, its operating expenses will be

• A)correct assuming the company calculates its cost of goods sold correctly.
• B)correct since operating expenses are not affected by inventory costs.
• C)overstated.
• D)understated.

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Definitions:

Cost Element

A component that categorizes costs according to their nature, involved in the cost accounting process to allocate expenses accurately.

Office Salaries

Expenses related to the wages and salaries of administrative and managerial staff in an office setting.

Timekeeper

A person or device responsible for recording the duration of an event, often used in sports, work activities, or any scenario where tracking time is essential.