Chapter 3 of the SOM covers which topic?

• A. Physical Inventory
• B. Stock Record Management
• C. Material Procurement
• D. Material Expenditures

Answer: (A)

The main concept being tested is performing a physical inventory. This covers the hands-on process of counting the actual items on hand, verifying those quantities against the stock records, and making any required adjustments to reconcile differences. It also involves identifying reasons for discrepancies—such as loss, damage, misplacement, or data-entry errors—and updating the inventory records accordingly so the data reflect reality. The focus is on validating what is physically present rather than on how stock data are managed, how materials are procured, or how expenditures are tracked. That’s why physical inventory is the best fit for Chapter 3.