To Discourage Producing for Inventory, Management Can

question 198

Multiple Choice

To discourage producing for inventory, management can:

• A)evaluate nonfinancial measures such as units in ending inventory compared to units in sales
• B)evaluate performance over a three- to five-year period rather than a single year
• C)incorporate a carrying charge for inventory in the internal accounting system
• D)All of these answers are correct.

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Definitions:

Objectivity

The practice of being unbiased and impartial, especially in reporting, analysis, or decision making.

Compromised

Compromised refers to a state where security, integrity, or function of a system, account, or confidential information has been illegally accessed or weakened.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a common goal.