Identify Whether the Following Are Benefits of Using a Perpetual

question 26

Essay

Identify whether the following are benefits of using a perpetual inventory system (in comparison to a periodic system).
$$\begin{array} { | l | l | } \hline \text { Potential benefit } & \text { True/False } \\\hline \text { A perpetual system is less costly than a periodic system. } & \\\hline \text { A perpetual system produces information that is more useful for inventory } & \\\text { management. } & \\\hline \begin{array} { l } \text { A perpetual system allows a company to avoid conducting costly inventory } \\\text { counts. }\end{array} & \\\hline \text { A perpetual system is required by IFRS and ASPE. } & \\\hline\end{array}$$

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Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Sequential Processing

Processing one aspect of a stimulus or problem at a time; generally used to process new information or to solve difficult problems.

Effortful Processing

A type of memory processing that requires attention and conscious effort in order to encode information.

Automatic Processing

Cognitive processing that occurs subconsciously and requires little to no attention or conscious effort.