Nez
The chief accountant of Grix Inc., a crop and livestock development company, reported to management that the pilferage level is negatively affecting the profit levels of Grix Inc. She suggested that more secured stocking technique be used to protect the company's stock against future possible pilferage. The company decided against her suggestion and instead took the advice of the business development manager, who suggested that a new cost effective design that triples only output and increases sales every two years be used to increase profit and in effect offset the effect of pilfering on the company's profit. After 4 years the pilferage level in Grix Inc caused Grix Inc. to go into administration.
The answers to the following questions, EXCEPT one, will be useful in deciding whether the Chief accountant's suggestion would have prevented Grix Inc. from going into administration, if her suggestion was implemented?
A. Do Grix Inc. employees pilfer?
B. Do rabbits Pilfer?
C. What is the pilferage level in the industry?
D. Is there a secure stocking technique that protects against pilferage?
E. Was Grix Inc. stock room attacked by robbers who stole almost all their goods?
Premise: Chief Accountant suggested to stop pilferage, but the company wen ahead with another suggestion. After some time, the company is again at the same place. We need to find out whether stopping pilferage would have stopped it. So we need to look out for options that talks about pilferation.
Option A: Yes, if her suggestion was implemented, this would have been taken care of
Option B: Yes, the rabits are a part of live stock and her suggestion could have stopped pilferage
Option C: Yes, we need to determine the average pilferage level of the industry. If the rate of the company was equal to the average level, then it would not have been an extenuating situation
Option D: If there were a technique that protected pilferage, then the company does not have to worry about pilferage/
Option E: This has nothing to do with pilferage of stealing in small amounts. This could not have been stopped by implementing the chief accountant's suggestion. Hence this does not tell anything about the pilferage.
Correct Option: E