Physical Controls Over Inventories Are Important in a Manufacturing Environment

question 49

Multiple Choice

Physical controls over inventories are important in a manufacturing environment because they enhance management's ability to:

• A) produce credible financial reports.
• B) prevent "in-house" losses such as theft and damage of inventory.
• C) detect inefficient or ineffective manufacturing operations.
• D) correct errors resulting from the physical inventory count.

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Definitions:

Outsourcing

Use of outside contractors or external organizations to acquire IT services.

Insourcing

Insourcing is the practice of performing a business function internally rather than outsourcing it to an external provider.

Onshoring

The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.

Gigster's Business Model

A digital platform business model that connects companies with freelance software developers and designers to work on projects, leveraging a gig economy structure.