ADM 1340 Chapter Notes - Chapter 6: Consignor, Perpetual Inventory, Consignee

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Darlene Himik

Document Summary

Perpetual"s should do a physical count in order to: Check the accuracy of their perpetual inventory records. Determine the amount of inventory lost due to shrinkage or theft. Two steps are required in determining inventory for both systems. Taking a physical inventory of goods on hand. Involves counting, measuring, or weighing each kind of inventory on hand. To reduce the number of errors discovered during an inventory count, a company should ensure that it has a good system of internal control. Process designed to help an organization achieve reliable financial reporting, effective and efficient operations, and compliance with relevant laws and regulations. 2. c. note the condition of the items, paying attention to any evidence of spoilage or. Determine the quantity of each item on hand damage that could affect the sales value: a second count should be performed by another employee or auditor. Since counting should take place in teams of two, both members count the item.