Choice "D" is correct. The directional test of tracing is generally used to test completeness. In this case, tracing the inventory tags to the computerized list of inventory items is a test of the completeness of the inventory list.Choice "b" is incorrect. Recalculation would be the step that would help to determine whether items included on the listing were properly counted.
Choice "a" is incorrect. Tracing is not relevant to the valuation determination of whether the lower of cost or market adjustment was properly applied.
Choice "c" is incorrect. Tracing is not relevant to any valuation determinations.