Which of the Following Control Activities Would Protect Inventory from Theft

question 44

Multiple Choice

Which of the following control activities would protect inventory from theft?

• A) Limited access to the warehouse containing inventory.
• B) Allowing only the inventory manager to authorize removal of items from the warehouse.
• C) Only the shipping clerks can verify the shipments and deliver the items to the warehouse.
• D) All of the above are control activities that would protect inventory from theft.

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and insurance premiums.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net gain or loss.

Sales Mix

The combination of products or services that a company sells, which significantly impacts its profitability.