Controls which provide a means of ensuring that the physical counts are properly summarised, priced at the same amount as the unit records, correctly extended and totalled and included in the general ledger at the proper amount are known as:
A) count quantity internal controls.
B) inventory compilation controls.
C) pricing internal controls.
D) standard cost controls.

Question

Quizplus · Accepted Answer

The controls described in the question refer to procedures and controls related to inventory compilation, which includes the proper summarisation, pricing, extension, and recording of physical counts of inventory. Therefore, the best choice is B - inventory compilation controls. The other options (count quantity internal controls, pricing internal controls, and standard cost controls) do not adequately reflect the nature of the described controls.

Controls Which Provide a Means of Ensuring That the Physical