The Costs That Result from Theft of Inventory Are ________

question 88

Multiple Choice

The costs that result from theft of inventory are ________.

• A) shrinkage costs
• B) external failure costs
• C) stockout costs
• D) costs of quality

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Definitions:

Intra-entity Transfers

Transactions involving assets, services, or funds between divisions or departments within the same entity.

Voting Stock

Shares that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Foreign Corporation

A company that is incorporated in a country outside of where it operates or conducts its business.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.