If a Company Determines Cost of Goods Sold Each Time

question 135

Multiple Choice

If a company determines cost of goods sold each time a sale occurs it

• A) must have a computer 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.

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Definitions:

Rational

Behaviors and decisions that maximize a person’s chances of achieving his or her goals.

Behavioral Economists

Economists focusing on how psychological, social, cognitive, and emotional factors influence the economic choices made by individuals and institutions.

Systematic Errors

Errors that consistently occur in the same direction and are caused by faults in the measurement system, not randomness.

Irrational

Behavior or actions that are not based on sound judgment or logic, often contrary to self-interest.