The Moving-Average Cost Flow Assumption for a Perpetual Inventory System

question 60

True/False

The moving-average cost flow assumption for a perpetual inventory system and the average-cost cost flow assumption for a periodic inventory system will allocate the same amounts to ending inventory and cost of goods sold.

---

Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, focusing on a company's liquidity and ability to meet short-term obligations.

Budgeted Cash Receipts

Forecasted cash inflows for a certain period, accounting for all expected sources of revenue including sales, investments, and loans.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses and capital expenditures.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the costs incurred.