Which of the following is least likely to be a possible cause of book-to-physical differences in inventory quantities?
A)Inventory cutoff errors.
B)Misapplication of LIFO.
C)Unreported scrap or spoilage.
D)Theft.

Question

Quizplus · Accepted Answer

Misapplication of LIFO would affect the cost of goods sold and the carrying value of inventory, but it would not cause a difference between book and physical inventory quantities. Inventory cutoff errors, unreported scrap or spoilage, and theft are more likely to cause differences in inventory quantities between the book and physical counts.

Which of the Following Is Least Likely to Be a Possible