There Are Three Internal Control Objectives and They Are to Safeguard

question 45

True/False

There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.

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Definitions:

Inventory Control

The process of managing inventory levels, orders, sales, and deliveries to ensure the right quantity of stock is available at the right time.

Sales Rise

An increase in the amount of products or services sold by a business within a specific period.

Safety Stock

An inventory buffer to prevent stockouts, typically held to account for variability in demand or supply.

EOQ Model

Economic Order Quantity Model; an inventory management formula that determines the optimal order quantity to minimize total inventory costs.