In a Perpetual Average Cost System

question 34

Multiple Choice

In a perpetual average cost system:

• A) A new weighted-average unit cost is calculated each time additional units are purchased.
• B) The cost allocated to ending inventory is generally the same as it would be in a periodic inventory system.
• C) The moving-average unit cost is determined following each sale.
• D) The average is determined by dividing the total number of units sold by the cost of units purchased during the period.

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Definitions:

Louis Wirth

A sociologist known for his work on urban life and the social structure of cities.

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