In Reviewing the Appropriateness of the Minimum Quantity Level of Inventory

Multiple Choice

In reviewing the appropriateness of the minimum quantity level of inventory established by a department, an auditor would be least likely to consider:

A) Stockout costs, including lost customers.
B) Seasonal variations in forecasting inventory demand.
C) Optimal order sizes determined by an economic order quantity model.
D) The potential for obsolescence of inventory items.