Question

The factor that determines whether goods should be included in a physical count of inventory.

A) Purchase price
B) Market demand
C) Ownership status
D) Physical possession

Answer 1

Physical possession is the factor that determines whether goods should be included in a physical count of inventory.

Step-by-step explanation:

The factor that determines whether goods should be included in a physical count of inventory is physical possession. Physical possession refers to having physical control or custody of the goods. In inventory management, goods should be included in a physical count only if they are in the possession of the company.

For example, if a company has purchased goods but they have not been delivered or received yet, those goods should not be included in the physical count of inventory.