Which Statement Concerning Inventory Is Not True

question 59

Multiple Choice

Which statement concerning inventory is not true?

• A)Regular physical stocktakes are part of the efficient management of inventory.
• B)Electronic point of sale systems greatly assist in the management of inventory.
• C)All categories of inventory should always be subject to the same degree of control.
• D)None of the above, i.e., all are true statements.

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Definitions:

Depletion

A method used to allocate the cost of extracting natural resources, such as timber, minerals, and oil, from the earth over the period those resources are consumed.

Reclamation

The process of restoring land that has been mined, logged, or used for industrial purposes back to its natural state or ensuring it is usable for a different purpose.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset from the time it was first utilized.

Major Class of Asset

Represents categories of assets grouped based on their similar financial characteristics, such as cash, inventory, property, etc.