Which One of the Following Statements About Inventory Is Not

question 155

Multiple Choice

Which one of the following statements about inventory is not correct?

• A)An increase in inventory levels is always a sign of inefficiency in inventory management.
• B)The measurement of inventory affects both the balance sheet and the income statement within an accounting period.
• C)The ending inventory of one accounting period becomes the beginning inventory of the next accounting period.
• D)The cost of inventory can vary over time and may be affected by technological innovation.

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Definitions:

Union Election

A process by which members of a labor union vote to elect representatives or decide on other union-related matters.

Federal Labor Law

Legislation that regulates the rights and duties between employers and workers at the national level.

Majority Vote

A voting requirement that more than half of the votes cast by members entitled to vote are necessary to make a decision or pass a proposal.

Floral Workers Union

A labor union representing the interests and rights of workers within the floristry industry.