Under GAAP, Companies Can Choose Which Inventory System $\quad$ Perpetual $\quad$ Periodic
A

question 173

Short Answer

Under GAAP, companies can choose which inventory system? $\quad$ Perpetual $\quad$ Periodic
a. $\quad$ Yes $\quad$$\quad$ No
b. $\quad$ Yes $\quad$$\quad$ Yes
c. $\quad$ No $\quad$$\quad$ Yes
d. $\quad$ No $\quad$$\quad$ No IFRS.

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Definitions:

Fixed Costs

Expenditures that do not vary with the level of activity or production within a short time frame.

Variable Costs

Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.

Total Dollar Amount

The complete sum of money involved in a transaction, including all costs and taxes.

Level of Activity

A measure used in accounting and production to determine the extent to which a business operation is being utilized, often influencing cost behavior.