Which of the Following Statements Regarding Periodic and Perpetual Inventory

question 194

Multiple Choice

Which of the following statements regarding periodic and perpetual inventory systems is correct?

• A)Perpetual inventory systems are inferior for determining optimal times to reorder inventory.
• B)Periodic inventory systems require a greater investment in technology.
• C)Perpetual inventory systems may assist in determining inventory lost due to shrinkage.
• D)Periodic inventory systems allow sales personnel to provide more immediate information regarding availability of inventory.

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Definitions:

Harmonized Sales Tax

A combined tax that includes both federal and provincial sales taxes, applied to the purchase of goods and services.

Price Tags

Labels or stickers on merchandise displaying the price of the item.

Implied Value

The estimated value of an asset or company after considering factors not directly stated but suggested by available information.

Annual Dues

Annual dues are yearly fees paid by members to belong to an organization, club, or group, often providing access to benefits or services.