Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 13

The purpose of the excess inventory report is to call management's attention to:
a. obsolete inventory.
b. all inventory items for which the on hand plus on order less committed stock is greater than the maximum stocking level.
c. all inventory items for which the on hand plus on order less committed stock is greater than the safety stock plus the EOQ by a material dollar value.
d. poor control over purchase orders.