Why Do Most Manufacturers Use a Perpetual Inventory System

question 26

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 generally accepted accounting principles.
• C)It is required for all manufacturers.
• D)It is a characteristic of a proper cost accounting system.

Identify the impact of inventory errors on net income.

Design and implement inventory control measures to prevent theft and damage.

Calculate gross profit and ending inventory using different inventory cost flow assumptions.

Understand the prohibitions and limitations of cost flow assumptions under International Financial Reporting Standards (IFRS).