Under the Periodic Inventory System,a Physical Inventory Must Be Taken

question 192

True/False

Under the periodic inventory system,a physical inventory must be taken at the end of the period to determine cost of goods sold.

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Definitions:

Break-even Point

Break-even Point is the financial analysis term that indicates when total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semi-fixed costs.

Variable Components

Parts of a cost or expense that change in proportion with changes in the level of business activity or production volume.

Fixed Components

The elements of a business's costs that remain constant regardless of the level of production or sales activity.