Which of the Following Should Not Be Included in the Physical

question 142

Multiple Choice

Which of the following should not be included in the physical inventory of a company?

• A)Goods held on consignment from another company.
• B)Goods in transit from another company shipped FOB shipping point.
• C)Goods shipped on consignment to another company.
• D)All of these answer choices should be included.

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Definitions:

Total Assets

Total assets represent the sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, reflecting its total resources.

Work in Process Inventory

The value of materials, labor, and overhead costs for products that have been started but are not yet completed in the manufacturing process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on expected costs and activity levels.

Indirect Labour

Labor costs associated with workers not directly involved in the production of goods or services.