Classification of Amortization of Prior Service Cost and Curtailment (Or

question 8

True/False

Classification of amortization of prior service cost and curtailment (or settlement )loss (or gain )will depend on the purpose of analysis.

---

Definitions:

Periodic Inventory System

An inventory system where the count of goods and the cost of goods sold are determined at specific intervals, such as annually.

Purchases Discounts

Reductions in price given by suppliers for early payment or volume purchases.

Freight In

The cost associated with the transportation of goods from the supplier to the receiver, which is typically included in the inventory cost.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory in real-time through the use of technology, such as barcode scanners.