The Primary Difference Between a Periodic and a Perpetual Inventory

question 46

Multiple Choice

The primary difference between a periodic and a perpetual inventory system is that a periodic system

• A) keeps a detailed record showing the inventory on hand at all times.
• B) provides better control over inventories.
• C) records the cost of goods sold on the date the sale is made.
• D) determines the cost of goods sold at the end of the accounting period.

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Definitions:

Empowerment

The process of giving individuals or groups more power and control over their lives or work, often leading to increased autonomy and self-determination.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Tasks

Specific pieces of work to be done, usually as part of a larger project.

Suggestion Involvement

The process of involving individuals in decision-making by encouraging them to propose ideas and recommendations.