Final answer:
The key factor for including goods in a physical count of inventory is ownership, which is determined by legal rights rather than physical possession.
Step-by-step explanation:
The factor that determines whether or not goods should be included in a physical count of inventory is ownership.
This means that any items that a company owns, regardless of their physical location, should be counted in the inventory.
Items that are physically present but not owned by the company (for example, items on consignment) are not included, while items that are owned but not physically present due to being in transit or at another location are included.
This principle is based on the concept of legal ownership rather than physical possession.
Many physical items that a person buys at one time but may sell at another time, such as a house, land, art, rare coins, or stamps, can also reflect the importance of ownership over physical possession when it comes to determining whether they should be counted as part of an inventory for personal or business purposes.