Custody of inventory is transferred to the shipping area upon authorization of
A) The customer order.
B) The shipping order.
C) The invoice.
D) The purchase order.

Question

Quizplus · Accepted Answer

The custody of inventory is transferred to the shipping area upon authorization of the shipping order. This is because the shipping order indicates that items need to be shipped, so it is only appropriate to transfer inventory to the shipping area once the shipping order has been authorized. Customer order and purchase order do not indicate shipping arrangements, while the invoice is generated after the shipment has been made.

Custody of Inventory Is Transferred to the Shipping Area Upon