Which of the Following Should Be Included in the Physical

question 196

Multiple Choice

Which of the following should be included in the physical inventory of a company?

• A) Goods held on consignment from another company.
• B) Goods in transit to another company shipped FOB shipping point.
• C) Goods in transit from another company shipped FOB shipping point.
• D) Goods in transit to or from another company shipped FOB shipping point.

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Definitions:

Quality Cost Report

A document detailing the costs associated with ensuring products or services meet quality standards, including prevention, appraisal, and failure costs.

Testing And Inspection

Activities involved in the quality assurance process, ensuring products meet certain standards and specifications.

Appraisal Cost

Costs associated with ensuring that a product or service meets quality standards, including inspection and testing.

Testing Incoming Materials

The process of evaluating the quality and specifications of raw materials or components before they are used in production.