The Periodic Inventory System Operates By

question 32

Multiple Choice

The periodic inventory system operates by:

• A) keeping track of inventory as it comes into the organisation and as it leaves.
• B) counting inventory at regular intervals to establish how much of each item is on hand.
• C) assuming that the inventory that came in first is the first to be sold.
• D) tracking the cost of specific items of inventory to the products sold by grouping items according to cost drivers.

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Definitions:

Order Forms

Documents used to specify the requirements for goods or services from a supplier, detailing the items, quantities, and delivery instructions.

Bait-And-Switch

A deceptive marketing practice where customers are lured by advertisements for a product at a low price, only to be persuaded to buy a more expensive item.

Lower-Quality Substitute

An alternative option that is considered to be of lesser quality or value compared to the original or preferred choice.

Purchase Order

A form that authorizes a purchase for the practice.