Question

Checking the quantity of inventory available before accepting a sales order is a good practice for all of the reasons except to
a. update inventory records to reduce the quantity available by the number of items ordered.
b. inform the customer about availability and delivery times.
c. verify the accuracy of the perpetual inventory records.
d. determine which items may need to be back ordered.

Answer 1

Answer:

The correct answer is (C)

Explanation:

Checking inventory before sales order is a good practice which helps to avoid problems for companies, and it helps to maintain a record. The checking of inventory has nothing to do with the accuracy of the perpetual inventory. Perpetual inventory is a system that helps to maintain a proper record of sales and purchase. Perpetual inventory record itself is a system to monitor inventory.