Kristin's Boutiques Has Identified the Following Items for Possible Inclusion

question 65

Multiple Choice

Kristin's Boutiques has identified the following items for possible inclusion in its December 31 inventory.Which of the following would not be included in the year-end inventory?

• A)Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin's Boutique as of December 31.
• B)Kristin has in its warehouse merchandise on consignment from Abby Co.
• C)Kristin has sent merchandise to various retailers on a consignment basis.
• D)Kristin has merchandise on hand which has been returned by customers because of wrong size.

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Definitions:

Quality Training

Educational programs and initiatives focused on improving the quality of products, services, and processes within an organization, often aimed at enhancing customer satisfaction.

Scrap Costs

Expenses associated with the disposal of waste materials or byproducts produced during the manufacturing process.

Purchase Order Processing

The administrative procedure of managing and executing purchase orders from requisition to payment and receipt of goods.

Facility-Level Activity

Operations and actions at the plant or facility level that are necessary for production but not tied to specific units produced.