Asked by Brenda Levina on Jun 06, 2024
Verified
Of the following,which is not a control for safeguarding inventories?
A) Storing inventory in a locked warehouse.
B) Having the person responsible for receiving inventory purchases also be responsible for shipping inventory sales.
C) Limiting inventory access to authorized employees.
D) Separating inventory accounting from inventory handling duties.
Inventory Safeguarding
Measures and controls implemented by a business to protect its inventory from loss, theft, or damage.
Locked Warehouse
A secured storage facility used to hold goods or collateral, often for financial arrangements or until customs duties are settled.
- Acquire knowledge on the essential principles of inventory management and regulatory procedures.
Verified Answer
SB
Shelby BucklerJun 08, 2024
Final Answer :
B
Explanation :
Having the same person responsible for receiving and shipping inventory creates a lack of segregation of duties and increases the risk of errors or fraud. The other options all provide effective controls for safeguarding inventory.
Learning Objectives
- Acquire knowledge on the essential principles of inventory management and regulatory procedures.