Inventory is a complex accounting and auditing area due to all of the following except
A)diversity of items in inventory.
B)low volume of activity.
C)potential difficulty in classifying inventory.
D)difficulty in applying the lower of cost or market principle.

Question

Quizplus · Accepted Answer

The statement "low volume of activity" is incorrect as inventory management involves high volume of activity such as counting, ordering, receiving and processing inventory transactions. All other choices are valid concerns in inventory management.

Inventory Is a Complex Accounting and Auditing Area Due to All