Why Do Most Manufacturers Use a Perpetual Inventory System

question 83

Multiple Choice

Why do most manufacturers use a perpetual inventory system?

• A)It is a requirement of Revenue Canada for all Canadian companies.
• B)It is a generally accepted accounting principle.
• C)It is required for all manufacturers.
• D)It is a characteristic of a proper cost accounting system.

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Definitions:

Governmental Decisions

The outcomes or resolutions made by authorities at various levels of government regarding policies, laws, or administrative rules.

Legislative Branch

The part of government responsible for making laws, comprising entities such as parliaments or congresses.

Judicial Decisions

Rulings and opinions issued by courts that interpret laws and can set legal precedents.

Executive Decisions

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