In Accounting for Inventory, the Quality of Estimates Made by a Client's

question 11

Multiple Choice

In accounting for inventory, the quality of estimates made by a client's management is directly related to:

• A) the likelihood of error in the allocation of common costs.
• B) the strength of internal controls of the inventory process.
• C) the degree of sophistication of the client's automated inventory processes.
• D) the number of tags or count sheets used in the client's physical inventory count.

---

Definitions:

Activity-Based Costing

A pricing strategy that recognizes activities conducted in a company and apportions the cost of each activity across all services and products, reflecting their real consumption.

Receiving Calls

The process of answering incoming telephone calls, often associated with customer service or technical support departments.

Time-Driven

Describes processes or activities where the primary factor or measurement is time, often used in various management and productivity contexts.

Customer Service

The support and guidance offered by a firm to its customers or users of its goods or services.