All of the Following Statements Regarding Inventory Shrinkage Are True

question 52

Multiple Choice

All of the following statements regarding inventory shrinkage are true except:

• A)Inventory shrinkage refers to the loss of inventory.
• B)Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.
• C)Inventory shrinkage is recognized by debiting an operating expense.
• D)Inventory shrinkage is recognized by debiting Cost of Goods Sold.
• E)Inventory shrinkage can be caused by theft or deterioration.

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Definitions:

Spontaneous Recovery

The reappearance of a conditioned response after a period of rest or no exposure to the conditioned stimulus.

Discrimination

Unjust or prejudicial treatment of individuals based on characteristics such as race, age, or sex.

Observational Learning

A learning process through which behavior is acquired by watching and imitating others.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning or learning.