A major shortage/overage is anything ___________ and above.

A major shortage/overage is anything ___________ and above.

• A. $20
• B. $25
• C. $30
• D. $15

Answer: (B)

Major shortages or overages are about recognizing when a discrepancy between what should be on hand and what is actually on hand is large enough to require formal review. The standard sets a dollar threshold so only significant variances trigger escalation. In this case, the threshold is twenty-five dollars, so any shortage or overage of twenty-five dollars or more is considered major. Using this cutoff keeps routine, smaller variances manageable at the store level and ensures larger discrepancies are investigated promptly with proper controls. The other amounts listed would not match the defined cutoff, since they are below the threshold, and the rule itself uses the twenty-five-dollar mark as the point at which the issue becomes a major variance.

Major shortages or overages are about recognizing when a discrepancy between what should be on hand and what is actually on hand is large enough to require formal review. The standard sets a dollar threshold so only significant variances trigger escalation. In this case, the threshold is twenty-five dollars, so any shortage or overage of twenty-five dollars or more is considered major. Using this cutoff keeps routine, smaller variances manageable at the store level and ensures larger discrepancies are investigated promptly with proper controls. The other amounts listed would not match the defined cutoff, since they are below the threshold, and the rule itself uses the twenty-five-dollar mark as the point at which the issue becomes a major variance.