Which statement is true concerning inventory management programs?
A)A yearly inventory for accounting purposed should be sufficient for most small businesses.
B)Keeping stock for "just in case" is suggested for customer satisfaction and is needed for inventory.
C)Software programs supplemented by a required physical inventory will assist in inventory control.
D)Slow moving items in a company's inventory are limited concerns since they can be marked down and sold.

Question

Quizplus · Accepted Answer

Software programs alone may not account for theft, damage, or other issues that may cause discrepancies in inventory levels. Therefore, a physical inventory is necessary to ensure accurate control of inventory. Option A is incorrect because businesses should conduct inventory checks more frequently than once per year. Option B is incorrect because keeping excess stock can lead to issues such as overstocking and obsolete inventory, which can be costly for a business. Option D is incorrect because slow-moving items can tie up working capital and may never sell, potentially resulting in a loss for the business.

Which Statement Is True Concerning Inventory Management Programs