An Excess of Physical Inventory Over Book Inventory Is Usually

question 90

Multiple Choice

An excess of physical inventory over book inventory is usually caused by:

• A) customer shoplifting.
• B) markdowns.
• C) bookkeeping errors.
• D) too high of markups.
• E) employee discounts.

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Definitions:

Master Budget

An all-encompassing financial plan for a company, consolidating all its individual budgets related to sales, cost of goods sold, operating expenses, assets, liabilities, and cash flows.

Direct Labor

The wages and related expenses for workers who are directly involved in the production of goods.

Cost of Tracie's Direct Labor

The cost of Tracie's direct labor refers to the wages and associated expenses for the hours worked directly on products or services by Tracie, as an example of an employee's labor costs.

Budgeted Data

A financial plan for the future concerning the revenues and costs of a business.