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Exam CFE topic 3 question 10 discussion

Actual exam question from ACFE's CFE
Question #: 10
Topic #: 3
[All CFE Questions]

Which of the following is NOT the aspect of inventory purchase?

  • A. Inventory purchases purposely increase in year 1 only to be liquidated in year 2.
  • B. inventory for the year 2 will be much greater than year 1.
  • C. Increase sales in year 2 are unexpected and purchase of inventory does not keep pace with the sales.
  • D. might be some fraud scheme in inventory.
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Suggested Answer: B 🗳️


Chosen Answer:
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1 year, 10 months ago
there may be valid reasons for a higher inventory stock,, especially if there situations when the ware house capacity is increased, additional budget approved or higher dependency on a risky supplier and tighter manufacturing deadlines,, there are valid reason available for having an increase in inventory over the previous period
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A (35%)
C (25%)
B (20%)
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