The primary objectives of control over inventory are
A) safeguarding the inventory from damage and maintaining constant observation of the inventory
B) reporting inventory in the financial statements
C) maintaining constant observation of the inventory and reporting inventory in the financial statements
D) safeguarding inventory from damage and reporting inventory in the financial statements

Question

​The primary objectives of control over inventory are
A) ​safeguarding the inventory from damage and maintaining constant observation of the inventory
B) ​reporting inventory in the financial statements
C) ​maintaining constant observation of the inventory and reporting inventory in the financial statements
D) ​safeguarding inventory from damage and reporting inventory in the financial statements

Quizplus · Accepted Answer

The primary objectives of control over inventory are to safeguard inventory from damage and to report inventory in the financial statements. Maintaining constant observation of the inventory may be a helpful aspect of control, but it is not a primary objective. Therefore, choice D is the best answer.

​The Primary Objectives of Control Over Inventory Are

The Primary Objectives of Control Over Inventory Are