The Purchasing Cycle Involves Collecting,cleansing,and Analyzing Data Regarding Expenditures with the Purpose

question 84

True/False

The purchasing cycle involves collecting,cleansing,and analyzing data regarding expenditures with the purpose of reducing costs,improving efficiency,and monitoring compliance with purchasing policies.

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Definitions:

LIFO method

Last In, First Out; an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Periodic system

An inventory valuation method where updates to inventory records are made on a periodic basis, usually at the end of an accounting period.

Beginning inventory

The value of a company's inventory at the start of an accounting period.

Perpetual inventory system

An inventory system that keeps continuous, real-time records of goods bought and sold, updating inventory accounts without physical counts.