When a Company Uses the Perpetual Inventory Method,it Should NOT

question 47

True/False

When a company uses the perpetual inventory method,it should NOT be necessary to conduct a physical count of inventory.

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, including expenses like rent and salaries of managers.

Raw Materials Purchases

The total cost incurred by a company to buy the raw materials needed for production.

Standard Costs

Standard costs are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period under assumed conditions.

Kilos

A metric unit of measure for mass, equivalent to one thousand grams or approximately 2.20462 pounds.