In the “All About You” feature in this chapter, you learned about inventory control. Suppose, after graduating, that you accept a job as a manager for a retail store that sells high-end and mid-level cameras and photographic equipment. The equipment is purchased from other countries and is subject to currency fluctuation.

Instructions
(a) Identify some control measures that you think should be in place in your store to safeguard the inventory.
(b) Assume the store uses a perpetual inventory system. Do you think that taking a physical inventory count once a year is adequate? If not, how often do you think a physical inventory count should be taken? Identify an accounts that would be affected by an adjusting journal entry to update the inventory for any shortages or overages.
(c) Which cost determination method would you recommend that the store use? Why? Would you recommend that the store use the same method for both the cameras and small items such as picture frames? Why or why not?