Which of the Following Does NOT Correctly Describe a Perpetual

question 39

Multiple Choice

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

• A) Cost of goods sold is calculated every time a sale is made.
• B) Assuming shrinkage of zero, inventory and cost of goods sold do not have to be updated at the end of the period.
• C) The use of this system eliminates the requirement for an annual physical inventory count.
• D) Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the periodic system.

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Definitions:

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or cultures.

Axiology

The branch of philosophy that studies the nature of values and value judgments.

World View

A comprehensive outlook or perspective through which an individual interprets the world and interacts with it.

Teleology

A philosophical approach that explains phenomena by their purposes or goals rather than by their causes.