Identify an Accurate Statement About Time Factor Control Mechanisms

question 2

Multiple Choice

Identify an accurate statement about time factor control mechanisms.

• A)Feedforward control mechanisms consider, in advance, the possibility of any malfunctions or undesirable outcomes.
• B)Feedforward control mechanisms are often applied while operations are proceeding.
• C)Concurrent controls are the least desirable control mechanisms when damage or mistakes occur.
• D)Concurrent controls cannot be used to catch the problems that feedforward controls cannot anticipate.

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Definitions:

Ending inventory

The value of goods available for sale at the end of an accounting period, a crucial component for calculating the cost of goods sold (COGS).

Earliest costs

This term is not standard in financial terminology; it may refer to historical costs, which are the original monetary value of an economic item.

Perpetual inventory system

An inventory management system where updates are made continuously to record sales and purchases of inventory.

FIFO inventory cost method

A method to assign costs to inventory that assumes the first items purchased are the first ones sold, primarily affecting the cost of goods sold and ending inventory value.