Which of the Following Is Not an Advantage of Perpetual

question 29

Multiple Choice

Which of the following is not an advantage of perpetual inventory system?

• A)It helps reduce expenses and costs.
• B)It helps increase productivity of the economy.
• C)It is simple and less costly to maintain.
• D)It provides up to date information on inventory and cost of goods sold instantly.

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Definitions:

Annual Coupon

Annual Coupon refers to the yearly interest payment made by a bond issuer to its bondholders, based on the bond's face value.

Premium

The amount by which the price of a financial instrument or commodity exceeds its intrinsic or face value, often related to insurance costs or bond prices.

Maturity Risk Premium

An additional return that investors demand for holding a bond that has a longer time until maturity, reflecting the increased risk over time.

Interest Rates

The cost incurred by a borrower, represented as a proportion of the principal, for accessing a lender's assets.