Asked by
Ashwin Mohan
on Nov 15, 2024Verified
If a company determines cost of goods sold each time a sale occurs, it
A) must have a computerized accounting system.
B) uses a combination of the perpetual and periodic inventory systems.
C) uses a periodic inventory system.
D) uses a perpetual inventory system.
Perpetual Inventory System
An inventory accounting system where updates are made continuously as transactions occur, reflecting the real-time quantity of inventory on hand.
Cost Of Goods Sold
Costs pertaining directly to the crafting of goods a business sells, covering both labor and material expenses.
- Identify the distinctions between perpetual and periodic inventory management systems and their influence on accounting statements.
Verified Answer
PG
Learning Objectives
- Identify the distinctions between perpetual and periodic inventory management systems and their influence on accounting statements.
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