What Is the Basic Purpose of Inventory Analysis

question 100

Multiple Choice

What is the basic purpose of inventory analysis?

• A) To provide precise inventory valuations when generating accounting records for the firm's annual report.
• B) Because there are costs for making each new production setup, inventory allows management to reduce the number of setups.
• C) To provide a safeguard for variation in raw material delivery time.
• D) To take advantage of economic purchase order size.
• E) To specify when items should be ordered and how large the order should be.

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Definitions:

Act of Omission

A legal concept describing a failure to act when there is a duty to do so, which can result in liability.

Mens Rea

A legal principle that refers to the intent or knowledge of wrongdoing that constitutes part of a crime, as opposed to the action or conduct of the accused.

Actus Reus

A term from Latin meaning "guilty act," referring to the physical act of committing a crime, as opposed to the mental intent.

Mens Rea

A legal principle meaning "guilty mind," referring to the intent or knowledge of wrongdoing that constitutes part of a crime.