by comparison with procedures used for determining year end physical inventory. It is not unusual for a department head to estimate rather than count inventories is process. Consequently, figures are bound to save errors. Is this good practice or should more accurate methods be used, such as having inventory teams determin
by comparison with procedures used for determining year end physical inventory. It is not unusual for a department head to estimate rather than count inventories is process. Consequently, figures are bound to save errors. Is this good practice or should more accurate methods be used, such as having inventory teams determin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ordinarily, all department heads are responsible for their own inventories, and the methods they use to determine such data are crude by comparison with procedures used for determining year end physical inventory. It is not unusual for a department head to estimate rather than count inventories is process. Consequently, figures are bound to save errors. Is this good practice or should more accurate methods be used, such as having inventory teams determine inventories?
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