If a Company Does Not Update the Inventory and Cost

question 31

Multiple Choice

If a company does not update the inventory and cost of goods sold accounts during the period, it means company is using:

• A) the periodic inventory system.
• B) the perpetual inventory system.
• C) both the periodic and the perpetual inventory system.
• D) neither the periodic nor the perpetual inventory system.

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Definitions:

Established Firms

Companies that have been in business for a long time and have a stable position in the market.

Customer Focused

An approach in business that prioritizes the needs and satisfaction of customers in product and service development.

Product Pricing

The strategy of setting the appropriate cost for a product based on production costs, competition, target audience affordability, and market conditions.

Retain Customer

Strategies and activities aimed at keeping a company's existing customers engaged and satisfied with its products or services, thereby increasing loyalty and reducing churn.