A Physical Inventory Count Should Be Done at Least Once

question 132

True/False

A physical inventory count should be done at least once a year regardless of whether a perpetual or periodic inventory system is being used.

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Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials or labor costs.

Attractive Location

A place considered desirable for living, working, or setting up a business due to its advantages like accessibility, scenery, or economic opportunity.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and equipment leases.