Accounting · Inventory and Substance Over Form

Consignment inventory is an arrangement whereby inventory is held by one party but owned by another. Which TWO of the following statements typically indicate that the inventory in question is consignment inventory? 1. The manufacturer can require the dealer to return the inventory. 2. The dealer has no right of return of the inventory. 3. The manufacturer bears the inventory obsolescence risk. 4. The dealer bears the slow movement risk.