In Addition to the Cost-Flow Assumption,the System Used to Record

question 13

Multiple Choice

In addition to the cost-flow assumption,the system used to record movements in inventory also affects the determination of the cost of inventory.What are the systems commonly in use for recording the movement of inventory?

• A) continuous and cyclic
• B) ABC costing and overhead allocation
• C) positive and periodic
• D) periodic and perpetual

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Definitions:

Entropy

A measure of the disorder or randomness in a system, often associated with the second law of thermodynamics.

Free Energy

A thermodynamic quantity representing the amount of energy in a system that is available to do work.

Pi

The mathematical constant representing the ratio of a circle's circumference to its diameter, approximately equal to 3.14159.

Endergonic Reaction

A chemical reaction that requires the absorption of energy to proceed, characteristic of many biosynthetic processes.