Which of the Following Statements Is True of a Good

question 149

Multiple Choice

Which of the following statements is true of a good merchandise inventory control system?

• A)It minimizes the authorization of purchase of merchandise.
• B)It ensures that a physical count of inventory is not required.
• C)It often prevents the company from a stockout.
• D)It minimizes the authorization of sale of merchandise.

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Definitions:

Property Taxes

Taxes paid by property owners, based on the value of their property, to fund public services.

Depreciation Charges

The allocation of the cost of a tangible asset over its useful life for tax and accounting purposes.

Depreciation Conventions

Methods established by tax authorities to determine how much depreciation expense can be deducted, and when, for tax purposes.

Taxable Income

The portion of an individual's or entity's income that is subject to income tax after adjustments, deductions, and exemptions are accounted for.