A Company Using the Perpetual Inventory System Does Not Need

question 78

True/False

A company using the perpetual inventory system does not need to perform a physical count of inventory.

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Definitions:

Direct Labor Hours

The cumulative hours expended by workers directly engaged in the manufacturing of products or provision of services.

Static Budget

A budget that remains unchanged regardless of changes in activity levels, sales volume, or other variables during the budget period.

Variable Costs

Costs that vary directly with the level of production or volume of output, which includes expenses like raw materials and labor directly involved in production.

Fixed Costs

Expenses that do not change with changes in production level or sales volume.