Inquiries of Warehouse Personnel Concerning Possible Obsolete or Slow-Moving Inventory

question 92

Multiple Choice

Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the PCAOB assertion of

• A) Completeness.
• B) Existence.
• C) Presentation.
• D) Valuation.
• E) Rights and obligations.

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Definitions:

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product or service are produced.

Capital Goods

These are physical assets used in the production process to manufacture goods and services, including buildings, machinery, and equipment.

Consumer Goods

Products and services that are consumed or used by individuals, as opposed to those purchased by businesses or industries.

Technological Improvements

Enhancements and innovations in technology that increase productivity, efficiency, or value in processes or products.