Which of the Following Are Characteristics of a Perpetual Inventory

question 42

Multiple Choice

Which of the following are characteristics of a perpetual inventory system?

• A) Management knows how much inventory is on hand at all times.
• B) Purchases of inventory are recorded to the inventory account.
• C) The computer tracks inventory upon a sale and the cost of goods and inventory are immediately updated.
• D) All of these answer choices are characteristics of a perpetual inventory system.

---

Definitions:

Licensing

The act of giving official permission to an individual or organization to do something, especially to use intellectual property or conduct certain types of business activities.

Royalty

Royalty is a payment made to the owner of certain property rights, such as patents, copyrighted works, or natural resources, for the use of those rights.

Organic Chemicals

Compounds primarily made of carbon atoms bonded together, along with hydrogen, oxygen, and other elements, used in a wide array of industrial and consumer products.

Geocentric Staffing Model

The geocentric staffing model puts parent-country, host-country, and third-country nationals all in the same category, with the firm attempting to always hire the best person available for a position.