When Using the Perpetual Inventory System,the Entry to Close Cost

question 191

True/False

When using the perpetual inventory system,the entry to close Cost of Goods Sold will include a debit to Income Summary.

---

Definitions:

Marginal Rate

Usually referred to in the context of taxes or production, indicating the rate of increase in tax payment or output produced with the addition of one unit of input.

Constant

A fixed value in mathematics and science that does not change under specified conditions.

Normal Good

A good for which demand increases as consumer income rises, and falls when consumer income decreases.

Income Rises

An increase in the amount of money earned by individuals or households, which can impact their purchasing power and consumption habits.