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:

Stamp Collection

A hobby involving the collection and study of postage stamps, often regarded as a form of historical and artistic interest.

Valued

Considered to hold importance, worth, or usefulness in a particular context.

Discount Rate

The rate applied in discounted cash flow analysis for the assessment of the current value of future expected cash flows.

Present Value

Today's valuation of a future money sum or sequence of cash payments, given a specific rate of return.