Which of the Following Is Not a Cause of Inventory

question 68

Multiple Choice

Which of the following is not a cause of inventory shrinkage?

• A)markdowns due to stale merchandise
• B)theft by employees
• C)shoplifting by consumers
• D)administrative errors by vendors (such as short weighing)

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Definitions:

Restrictive Covenant

Clauses in contracts that restrict or limit one party from engaging in certain activities, often to protect business interests or property value.

Debt Contract

A legal agreement outlining the terms under which money has been borrowed and must be repaid, including the interest rate and maturity date.

Debtholder

An individual or institution that lends money to a company or government, thus owning its debt securities such as bonds.

Inventory Period

This refers to the time it takes for a company to sell its inventory and convert it into sales. It's a measure of efficiency and inventory management.