Which of the Following Is Least Likely to Be a Possible

question 17

Multiple Choice

Which of the following is least likely to be a possible cause of book-to-physical differences in inventory quantities?

• A)Inventory cutoff errors.
• B)Misapplication of LIFO.
• C)Unreported scrap or spoilage.
• D)Theft.

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Definitions:

Cash Received

The money that a business or individual receives during a specific period, including revenues from sales, services, loans, or investments.

Safety Stock

Extra inventory kept on hand to prevent stockouts due to unpredictable demand or delays in supply.

Budgeted Overhead

The estimated cost of all overhead expenses that are planned or expected to be incurred over a specific period.

Ending Inventory

The total value of all inventory a company has in stock at the end of its fiscal period, valuable for calculating cost of goods sold and gross profit.