The Essence of the Perpetual Method of Accounting for Inventory

question 52

Multiple Choice

The essence of the perpetual method of accounting for inventory is:

• A) all movements in each item of stock are tracked via detailed inventory records.
• B) a stocktake is performed.
• C) cost of sales is calculated at the end of the accounting period.
• D) it is useful for high value, low volume items.

---

Definitions:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can influence behavior and decisions.

External Locus of Control

A belief system where individuals think that their successes or failures result from external factors beyond their control.

Decisions

The process of making choices between alternative courses of action based on preferences, values, and available information.

Locus of Control

An individual's belief system regarding the causes of his or her experiences and the factors to which that person attributes success or failure.