Which of the Following Does NOT Correctly Describe a Periodic

question 44

Multiple Choice

Which of the following does NOT correctly describe a periodic inventory system?

• A) Cost of goods sold is calculated every time a sale is made.
• B) Cost of goods sold is a residual amount.
• C) Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the perpetual system.
• D) Inventory and cost of goods sold must be updated at the end of the period.

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Definitions:

Hawthorne Works

A facility of the Western Electric Company in Cicero, Illinois, famous for a series of studies from 1924 to 1932 that influenced the human relations movement in organizational management.

Employee Ownership

is a corporate structure in which employees own a stake in the company they work for, often through stock options or direct stock purchase plans.

Mary Parker Follett

An early 20th-century management consultant and social worker who emphasized human relations and leadership through group association.

Collective Responsibility

The concept that all members of a group share accountability for the actions and outcomes of the group as a whole.