When a Company Is Evaluating Whether or Not to Use

question 24

Multiple Choice

When a company is evaluating whether or not to use a perpetual vs.a periodic inventory system the following statement is most accurate:

• A)A perpetual inventory system provides far superior information and should be used at any cost.
• B)A periodic system is inferior and should never be used if possible.
• C)The cost of the system used should be measured against the benefits it provides.
• D)Both systems are equally good.

---

Definitions:

Prairie Houses

Architectural style developed by Frank Lloyd Wright, characterized by low-pitched roofs, wide eaves, and a strong emphasis on horizontal lines, reflecting the flat, broad landscape of the American Midwest.

Fireplace

A structure within a home or building designed to contain a fire for heating and, in many cases, cooking.

Alexander Calder

An American sculptor known for inventing the mobile, a type of kinetic sculpture that moves with air currents.

Mobile

A kind of sculpture, invented by Alexander Calder, combining nonobjective organic forms and motion in balanced structures hanging from rods, wires, and colored, organically shaped plates.