Strategic Plans and Goals Are Those That Focus on Where

question 29

True/False

Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.

Comprehend the recording of sales, including the cost of goods sold, under both periodic and perpetual inventory systems.

Recognize the differences between the perpetual and periodic inventory systems in terms of recording inventory transactions.

Identify the appropriate accounts to be debited and credited in various merchandise transactions under both inventory systems.

Grasp the concept of recording the payment for purchases and the impact of merchandise returns on financial statements.

---

Definitions:

Total Order

Total order is the complete quantity of goods or services requested by a customer at a particular time.

Demand Pattern

The trend or tendency of buyers purchasing certain quantities of a product at various times.

Overstock

Occurs when a company holds more inventory than it can sell, potentially leading to high holding costs and reduced profitability.

Product Availability

The extent to which a product can readily be found in the market and is accessible to customers.