Which of the following is not an inherent risk associated with inventory?
A)Inventory accounts typically have a high volume of activity.
B)Inventory is easily transportable.
C)Inventory may become obsolete.
D)Inventory costing methods frequently change from one year to the next.

Question

Quizplus · Accepted Answer

The other choices are inherent risks associated with inventory. However, inventory costing methods do not change frequently and are typically consistent from year to year. This is a management decision based on the cost flow assumption selected by the company.

Which of the Following Is Not an Inherent Risk Associated