A firm’s inventory consisted of 5,000 various types of stocks, 100 of which accounted for 75% of the total monetary value. The most recent regular quarterly manual count revealed that there was an unnecessary two years’ supply of the more expensive items.

A firm’s inventory consisted of 5,000 various types of stocks, 100 of which accounted for 75% of the total monetary value. The most recent regular quarterly manual count revealed that there was an unnecessary two years’ supply of the more expensive items.

The control that would best help to correct this oversupply problem is
A . Use of a control total over the number of unique inventory items.
B . Limit check on the total monetary value of the inventory.
C . Use of authorising signatures on requisitions for inventory requested by production.
D . Maintain perpetual inventory of the larger dollar value items in the inventory.

Answer: D