A Physical Count Would Be Necessary at the End of the Accounting

question 65

Multiple Choice

A physical count would be necessary at the end of the accounting period under which inventory system?

• A) Periodic inventory system
• B) Perpetual inventory system
• C) Both periodic and perpetual inventory systems
• D) Neither periodic nor perpetual inventory systems

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Definitions:

Common Fixed Expenses

Operating expenses that do not vary with production volume, such as salaries and rent, shared across multiple products or departments.

Net Operating Income

A financial metric that calculates a company's operational profitability, excluding interest and taxes.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct and traceable costs of the segment.