Periodic Review Systems Are ______

question 36

Multiple Choice

Periodic review systems are ______.

• A)characterized by weekly,monthly,or annual physical counts of inventory
• B)best suited for businesses that sell high-volume products
• C)systems where inventory is replenished halfway during a consumption cycle
• D)systems where the entire inventory of a product is ordered by a single customer

---

Definitions:

Partial-Year Depreciation

The calculation of depreciation for assets acquired or disposed of partway through the fiscal year, based on the portion of the year that the asset was in use.

Useful Life

The estimated period of time over which a tangible asset is expected to be useful for the purposes of the business.

Depreciable Cost

The original cost of a fixed asset minus its estimated salvage value, representing the amount subject to depreciation over the asset's useful life.

Straight-Line Depreciation

A procedure for allocating the price of a physical asset over its effective life in identical annual installments.