In Accounting for Inventory, Companies

question 64

Multiple Choice

In accounting for inventory, companies

• A)cannot use the periodic inventory system under GAAP.
• B)cannot use the periodic inventory system under IFRS.
• C)cannot use the perpetual system under IFRS.
• D)can use both periodic and perpetual inventory systems under GAAP and IFRS.
• IFRS.

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Definitions:

Lean Manufacturing

A methodical procedure designed to cut down on waste in a factory setup without reducing work efficiency.

Manufacturing Cells

Groups of machines and/or workstations arranged closely together to manufacture similar products or components, enhancing production efficiency and flexibility.

Cost Of Production Report

A document detailing the total costs involved in manufacturing goods, including materials, labor, and overhead costs, usually within a specific period.

Process Costing

An accounting methodology used in manufacturing, where costs are assigned to batches or process levels, suitable for homogeneous products.