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Inventory Turnover and Stock Flow
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GMAT
DI.201 Inventory Turnover and Stock Flow
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A system shows beginning inventory of 600 units, receipts of 500, sales of 320, customer returns of 15, and a physical ending count of 705. Which issue should an analyst flag?
A
The physical count perfectly reconciles with the recorded stock flow.
B
Sales should be added rather than subtracted, so ending inventory should be 1,435.
C
The physical count is 90 units above the flow-implied ending balance.
D
The physical count is 90 units below the flow-implied ending balance.
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