Maintaining good controls over merchandise inventory ensures that inventory purchases are properly authorized and accounted for by the accounting system.

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Maintaining good controls over merchandise inventory helps to ensure that inventory purchases are properly authorized and accounted for by the accounting system, which is critical for effective inventory management and accurate financial reporting. Good inventory controls can help to prevent errors, fraud, and other issues that can negatively impact a company's operations and financial performance. Common inventory control practices include regular physical inventory counts, tracking inventory levels and movement, using barcoding or other automated systems to streamline processes, and implementing internal controls such as segregation of duties and approval processes for inventory purchases.

Maintaining Good Controls Over Merchandise Inventory Ensures That Inventory Purchases