How Often Are Postings to Subsidiary Accounts in a Costing

question 10

Multiple Choice

How often are postings to subsidiary accounts in a costing system made?

• A)At the end of every accounting period
• B)Monthly
• C)Daily
• D)Weekly

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Definitions:

Safety Stocks

Additional quantities of stock kept in inventory to reduce the risk of stockouts caused by variations in supply or demand.

Average Inventory

Average Inventory is a calculation used to estimate the value or quantity of inventory that a business holds over a specific period, often used for analyzing inventory efficiency.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Cash Sales Policy

A cash sales policy is a company's strategy to require payment for goods or services at the time of sale, which can improve cash flow and reduce credit risk.