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Purchase Discount
is a reduction in the price of goods bought, usually due to early payment by the buyer to the seller.
Perpetual Inventory System
A perpetual inventory system continuously tracks inventory levels and costs, updating records with each receipt or sale of goods.
Physical Inventory
The process of counting by hand the actual inventory that a company holds in its premises, as opposed to counting based on purchase and sale records.
Cost Of Goods Sold
Expenses directly incurred from the manufacturing of a company’s goods for sale, such as materials and labor.
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