An Important Procedure for the Conduct of a Physical Inventory

question 43

Multiple Choice

An important procedure for the conduct of a physical inventory count is to maintain control over the count systems. Which of the following is not a common count system?

• A) use of pre-printed inventory count sheets.
• B) use of blank inventory tags.
• C) use of blank, pre-numbered inventory count sheets.
• D) use of pre-numbered three-part inventory tags.

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Definitions:

Scalar Chain

A hierarchy of authority in an organization where every employee has a clear superior and subordinate, forming a direct vertical line of authority.

Unity of Command

A principle stating that each employee should receive orders from only one superior to avoid confusion and conflict.

Bureaucratic Organization

A form of organization characterized by a hierarchical structure, formal rules and policies, and an emphasis on administrative tasks and procedural correctness.

Max Weber

A German sociologist and political economist known for his theory on the structure of authority and his analysis of bureaucracy.