If Management Wanted to Keep Track of Inventory That Was

question 7

Multiple Choice

If management wanted to keep track of inventory that was stolen or damaged separately from their cost of sales, which inventory system should they use?

• A)Periodic system
• B)Perpetual system
• C)Just-in-time system
• D)No inventory system separates stolen goods from the cost of sales.

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Definitions:

Sales Mix

Sales mix is the proportion of different products or services that a company sells, reflecting the variety of sales contributing to total revenue.

Units Sold

The total quantity of products or goods sold by a company during a specific period.

Relevant Range

The scope of activity levels within which the assumptions about fixed and variable costs in cost-volume-profit analysis remain valid.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and profit.