Which of the Following Steps Would Not Normally Be Included

question 4

Multiple Choice

Which of the following steps would not normally be included in a program for a physical inventory observation?

• A)Vouch unit prices to vendors' invoices or other cost records.
• B)Obtain the client's inventory counting instructions and review them for completeness.
• C)Inspect the tags used and unused and record the tag numbers used.
• D)Obtain the numbers of the last five receiving reports and last five shipping documents.

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Definitions:

Step-down Method

A method used in cost accounting to allocate service department costs to production departments in multiple steps, based on the services rendered.

Labor Hours

Labor hours refer to the total number of working hours spent by employees performing specific tasks or duties.

Space Occupied

The amount of physical area taken up by a business, product, or equipment in a facility.

Direct Method

A way to prepare a cash flow statement where actual cash flows from operating activities are listed directly.