Which tactic describes moving inventory overnight between locations to conceal shortages?

• A. Inflating unit costs used to price inventory
• B. Overstating the number of units on hand
• C. Asking customers to return goods
• D. Shuttling inventory overnight between locations

Answer: (D)

Shuttling inventory overnight between locations to conceal shortages shows up when stock is moved after hours so each site looks adequately stocked, even though the overall supply is short. By performing these transfers and not updating records or counts consistently, the true level of inventory is hidden, making it harder to detect shrinkage or theft and to produce an accurate picture of availability. This manipulation undermines the reliability of inventory records and can distort decisions and financial reporting.

The other options describe different ways to misstate or manage inventory: inflating unit costs changes the value rather than the quantity; overstating the number of units on hand falsely signals excess stock; and asking customers to return goods affects returns rather than concealing shortages across locations.