Question 16 1 Point Which of the following is not an example of safeguarding inventory? A storing inventory in restricted areas (B) using physical devices such as two-way mirrors, cameras, and alarms (C) matching receiving documents, purchase orders, and vendor's invoice D returning inventory that is defective or broken Question 17 1 Point Control of inventory should begin as soon as the inventory is ordered. Which of the following internal control steps is not done to meet this goal? A) check the invoice to the receiving report (B) check the invoice to the purchase order C check the invoice with the person who specifically purchased the item D check the invoice for mathematical accuracy
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The Deep Dive
Did you know that the concept of inventory management has a rich history? In ancient Mesopotamia, around 3000 BCE, traders kept clay tablets to track goods and trade. This practice evolved over the centuries, with double-entry bookkeeping in the Renaissance being a game-changer for inventory control in businesses. It laid the foundation for modern accounting practices and inventory management strategies we use today! Inventory management isn’t just about storing goods; it’s a crucial part of many businesses to ensure efficiency, minimize losses, and improve cash flow. For instance, retailers often use a method called Just-In-Time (JIT) inventory, which allows them to receive goods only as they need them, thus reducing storage costs and waste. This makes supply chain operations much more dynamic in today’s fast-paced market!