Which of the Following Circumstances Is Not a Reason to Compute

question 12

Multiple Choice

Which of the following circumstances is not a reason to compute an estimate of the amount of inventory?

• A)To evaluate the accuracy of a physical count of goods.
• B)To complete the company's annual income tax return.
• C)To prepare monthly or quarterly financial statements without incurring the expense of taking a physical inventory.
• D)To support an insurance claim for a loss due to theft of inventory.

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Definitions:

Utility Function

An equation that quantifies the satisfaction or utility that a consumer derives from consuming a set of goods and services, enabling analysis of consumer choices.

Consumption

The employment of products and services by individual consumers or households.

Utility Function

A mathematical representation expressing a consumer's preference ranking system for different bundles of goods, measuring satisfaction derived from consumption.

Consumptions

The use of goods and services by households or an economy, including the process by which commodities are utilized to satisfy needs or desires.