An Indication of Potential Inventory Fraud Is That Inventory Levels

question 44

True/False

An indication of potential inventory fraud is that inventory levels are growing faster than sales.

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Definitions:

Market-Price Transfer

A pricing method used in transactions between divisions of the same company, based on prevailing market prices.

Durian Juice Concentrate

A thick, reduced extract of durian fruit, used as a base for beverages, flavoring, or food products.

Variable Cost

Costs that vary directly with the level of production or service activity.

Decentralisation

The distribution of decision-making powers from central authority to lower-level employees or divisions in an organization.