An Advantage of the Fixed-Period Inventory System Is That

question 26

Multiple Choice

An advantage of the fixed-period inventory system is that:

• A) safety stock will be lower than it would be under a fixed-quantity inventory system.
• B) there is no physical count of inventory items when an item is withdrawn.
• C) no inventory records are required.
• D) orders usually are for smaller order quantities.
• E) the average inventory level is reduced.

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Definitions:

Internally Developed Intangible

Assets created internally by a company, such as software, patents, or trademarks, which do not qualify for capitalization unless they meet specific criteria.

Intellectual Capital

Non-physical assets of a company, including human capital, organizational capital, and intellectual property, contributing to the company's value.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Goodwill

An intangible asset that represents the excess value of a company above its tangible assets and liabilities, often arising from factors such as brand reputation, customer relationships, and intellectual property.