Which of the Following Factors Influences the Need to Safeguard

question 79

Multiple Choice

Which of the following factors influences the need to safeguard and monitor inventory movement?

• A)Inconsistent or high levels of inventory movement
• B)If the inventory is held at various locations
• C)If a company's inventory items are difficult to differentiate
• D)Each of the answers is correct

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Definitions:

Residual Value

The estimated salvage value or the value of an asset at the end of its useful life.

Accumulated Depreciation

A cumulative account that records the depreciation expense of an asset, reducing its book value over time.

Initial Cost

The original acquisition cost of an asset or investment, prior to any adjustments for depreciation, improvement, or amortization.

Fixed Asset

A Fixed Asset is a long-term tangible piece of property that a company owns and uses in its operations to generate income, and not expected to be consumed or converted into cash within a year.