Asked by David Plata on May 21, 2024

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In an actual business,which of the following inventory accounting issues frequently arise?

A) How should physical quantities in inventory be determined?
B) What items should be included in ending inventory?
C) What costs should be included in inventory purchases?
D) All of these are inventory accounting issues that frequently arise.

Inventory Accounting

The process of valuing and managing inventories, focusing on the cost of goods sold, inventory valuation, and inventory management practices.

Physical Quantities

The measurable amount of a stock or resource, expressed in units of weight, volume, or count.

Ending Inventory

The aggregate sum of products ready for purchase at the closure of a financial period.

  • Understand the various inventory accounting issues and practices.
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NJ
Nicole JacksonMay 27, 2024
Final Answer :
D
Explanation :
All of these issues frequently arise in inventory accounting. Determining physical quantities, identifying items to include in ending inventory, and deciding which costs should be included in inventory purchases are all important considerations when managing inventory in a business. Failing to accurately account for inventory can have significant financial consequences, making it critical for companies to carefully monitor their inventory processes and accounting methods.