Shilling Company Has Implemented an Inventory Management System in Which

Multiple Choice

Shilling Company has implemented an inventory management system in which one person places the order for new inventory, a second person checks it against the purchase order when it arrives and a third person records the receipt of physical inventory in the accounting records. The purpose of this system is:

A) to reduce storage costs.
B) to guard against stock-outs.
C) to reduce accounting errors.
D) to guard against internal theft and collusion.