Which of the Following Statements Is Correct for a Company

question 97

Multiple Choice

Which of the following statements is correct for a company that uses the FIFO costing method under a perpetual inventory system? All else being equal

• A)The value of the ending inventory would be higher under a periodic system.
• B)The value of the ending inventory would be lower under a periodic system.
• C)The value of the ending inventory would be the same under a periodic system.
• D)The periodic system would not require any additional entries at the end of the period.

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Definitions:

Top Executives

are the highest-ranking employees in a company or organization, responsible for making major corporate decisions.

Autocratic Control

Refers to a management style where decision-making powers are centralized in the hands of one individual, with little to no input from subordinates.

Organizations

Structured groups of individuals working together to achieve shared goals through a systematic arrangement of resources, information, and activities.

Performance Threat

A situation in which something is obviously wrong or has the potential to go wrong.