Final answer:
Implementing a real-time tracking system for all incoming inventory can help reduce the risk of errors in counting inventory delivered by suppliers. The correct answer is D.
Step-by-step explanation:
The correct answer is D. Implementing a real-time tracking system for all incoming inventory. Implementing a real-time tracking system can help reduce the risk of errors in counting inventory delivered by suppliers. It provides accurate and up-to-date information about the quantity of inventory that has been received, allowing for better tracking and reconciliation.
Regularly updating receiving employees about expected quantities (option A) can help in terms of communication, but it may not address the risk of errors in counting. Not informing receiving employees about the expected quantities (option B) can lead to confusion and potential errors. Allowing suppliers to handle inventory counts independently (option C) can introduce a lack of control and increase the risk of errors.
Regularly updating receiving employees about expected quantities is the best control to reduce the risk of errors in inventory counts. Maintaining accurate information is crucial for managing price, quantity, and quality of inventory.
The control designed to reduce the risk of errors in counting inventory delivered by suppliers is Regularly updating receiving employees about expected quantities. This method ensures that receiving employees are aware of what is expected and can quickly identify any discrepancies upon delivery. Regular updates can also improve accountability and reduce the opportunity for theft or misplacement.
Identify Ways to Reduce the Risk of Imperfect Information
To reduce the risk of imperfect information, it is important to implement checks and balances such as real-time tracking systems and regular audits. Maintaining clear communication channels among all parties involved in the inventory process is also crucial.
Explain How Imperfect Information Can Affect Price, Quantity, and Quality
Imperfect information can lead to overstocking or stockouts, which in turn may affect the price due to surplus or scarcity, the quantity available for sale, and potentially the quality of goods if excess stock leads to spoilage or obsolescence.