The Two Major Decisions to Be Made When Using the Periodic

question 97

True/False

The two major decisions to be made when using the periodic review system are the target inventory level and the order quantity.

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Definitions:

Ending Inventory

The total value of a company's merchandise, raw materials, and products left unsold at the end of an accounting period.

Moving Average

A statistical measure used to analyze data points by creating a series of averages of different subsets of the full data set.

Cost Of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company.