An Inventory Turnover Analysis Is Useful to the Auditor Because

question 60

Multiple Choice

An inventory turnover analysis is useful to the auditor because it may detect:

• A)Inadequacies in inventory pricing.
• B)Methods of avoiding cyclical holding cost.
• C)The optimum automatic reorder points.
• D)The existence of obsolete merchandise.

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Definitions:

Oedipal Complex

A psychoanalytic theory that describes a child's feelings of desire for the opposite-sex parent and jealousy towards the same-sex parent.

Superego

A component of Sigmund Freud's psychoanalytic theory, describing the part of the psyche that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Reinforcement

In behaviorism, the reward or relief that follows a behavior, making it likely that the behavior will occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior, often used as a method to discourage such behavior.