A Firm Named Pizzerio Inc

question 56

True/False

A firm named Pizzerio Inc.offers free pizzas based on a chance drawing of consumers who buy and fill up lucky-draw forms from its retail stores.This is an example of a sweepstake.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.

Cost of Goods Available

The total cost of goods that are available for sale during a certain period, including goods purchased or manufactured.

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.