Select the correct answer and explain in one sentence:
a). price levels do not change during the year.
b). a new product is added to inventory during the year.
c). the cost of inventory items changes during the year.
d). inventory quantities change from the beginning to end of the year
2.For which of the following reconciling items would an adjusting entry be necessary?
a). An error by the bank.
b). A bank service charge.
c). Outstanding checks.
d). A deposit in transit.
1 - c). the cost of inventory items changes during the year. ...
The solution answer 2 multiple choice Managerial Accounting questions.