asked 37.1k views
4 votes
If ending inventory for 2017 is understated because certain items were missed in the count, then:

1 Answer

3 votes
Online amounts available will be incorrect and the company will lose profit from items that could have been purchased. Inventory will look short and theft could be suspected.Company could waste money manufacturing additional amounts and manufacturing overhead can be understated as a result profits could be under or overstated if all orders are not accounted for.
answered
User Tim Bodeit
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7.9k points
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