When Using the Periodic Inventory System, Which of the Following

question 112

Multiple Choice

When using the periodic inventory system, which of the following is not a step in determining cost of goods purchased?

• A)Add freight-in
• B)Subtract purchase returns and allowances
• C)Subtract cost of ending inventory
• D)All of these are necessary steps.

Understand the process and importance of budgeting for direct materials and labor.

Identify the role of overhead costs in budgeting, including distinctions between variable and fixed overheads.

Demonstrate the ability to prepare and adjust budgets for sales and selling expenses.

Apply concepts of just-in-time (JIT) inventory management in budgeting.

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Definitions:

Nobel Prize

A set of international awards given annually in several categories such as Physics, Chemistry, Medicine, Literature, and Peace, to individuals or organizations who have made significant contributions to humanity.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave, which is related to the wave's frequency and energy.

Hue

A dimension of color that is determined by the wavelength of light; the term is often used to refer to the name of the color such as red, blue, or yellow.

Amplitude

The measure of the loudness of a sound; expressed in the unit called the decibel.