To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available,it is important to:
A)maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks.
B)maintain accurate and timely perpetual inventory records and constantly conduct physical inventory checks.
C)maintain accurate and timely periodic inventory records and periodically conduct physical inventory checks.
D)maintain accurate and timely periodic inventory records and constantly conduct physical inventory checks.

Question

Quizplus · Accepted Answer

Maintaining accurate and timely perpetual inventory records will provide real-time information about the availability of goods, ensuring that orders are not processed when goods are not in stock, and reducing the risk of rejecting orders. Conducting periodic physical inventory checks will help ensure the accuracy of the perpetual inventory records and identify any discrepancies that need to be addressed. Constantly conducting physical inventory checks would be too time-consuming and costly, while periodic inventory records would not provide real-time inventory information. Therefore, the best option is to maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks.

To Reduce the Risk of Allowing an Order to Proceed