If a Company Mistakenly Counts Less Items During a Physical

question 142

Multiple Choice

If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of goods sold?

• A) understated
• B) overstated
• C) no change
• D) only inventory will be affected

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Definitions:

Output

The final product, result, or amount produced by a process, system, or activity.

People

Refers to individuals or groups involved in a specific context or situation, such as employees within an organization or customers in a business setting.

Knowledge Workers

Employees valued for their ability to interpret and analyze information, often contributing to innovation and strategic planning in a business.

Lower-Level Managers

Managers who supervise routine tasks and the day-to-day operations of a business, often directly managing non-managerial employees.