To Update the Inventory Records for the Sale of Merchandise

question 63

Multiple Choice

To update the inventory records for the sale of merchandise under a perpetual inventory system, the entry would include a:

• A)credit to Inventory.
• B)debit to Accounts Payable.
• C)debit to Sales Revenue.
• D)credit to Cost of Goods Sold.

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Definitions:

Variable Costs

Expenses that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rental fees, wages, and insurance payments.

Peak-period Demand

The highest level of demand for a product or service, typically occurring during specific periods due to various factors.

Maintenance Department

A division within an organization dedicated to the upkeep and repair of facilities, machinery, and equipment to ensure operational efficiency.