A formal review and reporting of obsolete, slow- moving, damaged and overstated inventory items:
A) involves reviewing perpetual inventory master files for inventory turnover and holding discussions with engineering or production personnel.
B) is an internal control designed to prevent the overstatement of inventory through the inclusion of obsolete inventory.
C) should be done by a competent employee.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above options are correct. Reviewing perpetual inventory master files for inventory turnover and holding discussions with engineering or production personnel helps in identifying slow-moving or damaged inventory items. Obsolete inventory should be identified and removed from the inventory records to prevent the overstatement of inventory. This task should be done by a competent employee who understands the inventory management system and can utilize the appropriate tools and techniques to effectively review and report on inventory items.

A Formal Review and Reporting of Obsolete, Slow- Moving, Damaged