In a Perpetual Inventory System

question 78

Multiple Choice

In a perpetual inventory system

• A) The sales journal tracks sales discounts taken
• B) The cash receipts journal tracks sales returns and allowances taken
• C) The cash disbursements journal tracks purchase discounts taken
• D) The purchase journal tracks merchandise inventory bought
• E) The sales journal tracks increase in inventory

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Definitions:

Static Budget

A type of budget that remains unchanged over a period, regardless of any changes in business activity or operations.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity, allowing for better cost control and planning.

Direct Labor

Direct Labor refers to the wages and benefits for employees directly involved in the production of goods, easily traceable to specific products or services.

Variable Electric Power

Electricity supply or rate that can fluctuate based on demand or time of use, often tied to renewable energy sources.