The Primary Reason a Physical Inventory Is Taken Is To

question 60

Multiple Choice

The primary reason a physical inventory is taken is to:

• A)Adjust the perpetual inventory record for unrecorded shrinkage losses.
• B)Ensure the periodic inventory record is valued correctly.
• C)Both ensure the periodic inventory record is being stored securely and that it is valued correctly.
• D)Ensure the perpetual inventory record is being stored in a secure manner.

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Definitions:

Majority Voting

Majority voting is a voting system in which decisions are made based on the majority of votes cast, requiring more than half the votes to pass a proposal or elect a candidate.

Marginal Benefits

The extra pleasure or benefit obtained from acquiring or creating an additional unit of a product or service.

Recreation Center

A facility provided for leisure activities which may include sports fields, swimming pools, and other amenities for public use.

Marginal Costs

Refers to the increase in total production cost that arises when the quantity produced is incremented by one unit.