Which of the Following Is True Under a Periodic System

question 58

Multiple Choice

Which of the following is true under a periodic system:

• A)A COGS expense is recognized each time a sale is made
• B)The inventory account is not updated with each purchase.
• C)Inventory shrinkage is easily identified.
• D)This system can be costly to implement.

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Definitions:

Property Rights

Legal rights to use, transfer, or sell a particular property or resource.

Sustainable Rate

Refers to the level at which a resource can be used without depleting it, ensuring its availability for future generations.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services, including raw materials, labor, and overheads.

Property Rights

Legal rights to possess, use, and dispose of assets, including the right to benefit or generate income from them.