Phantom inventory is created when
A) Actual physical stock is zero because of RFID technologies.
B) Physical stock does not match computer stock.
C) Physical stock is greater than computer stock.
D) All of the above cause phantom inventory.

Question

Quizplus · Accepted Answer

Phantom inventory is created when physical stock does not match computer stock. This can occur due to a variety of reasons, including inaccurate data entry, theft, or loss of inventory during transportation. It can also occur when the computer system does not properly update inventory levels, leading to a mismatch between physical and recorded inventory. RFID technologies may help prevent inventory discrepancies, but they do not directly cause or solve the issue of phantom inventory. Physical stock being greater than computer stock is not an instance of phantom inventory.

Phantom Inventory Is Created When