When a Periodic Inventory System Is Used,________

question 38

Multiple Choice

When a periodic inventory system is used,________.

• A)an adjusting entry is needed to record the ending Merchandise Inventory account balance
• B)the process for closing the Income Summary and Owner's Withdrawals accounts differs from the process used in the perpetual inventory system
• C)beginning Inventory,Purchases,and Freight In accounts are closed via the Income Summary Account
• D)there is no need to take a physical count of inventory

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to provide more accurate cost information.

Product L3

Denotes another distinct product or model within a company's merchandise or production lineup, serving as a specific reference to differentiate it from other items.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of activities they use.

Activity-Based Costing

An accounting method that identifies the activities that a firm performs and then assigns indirect costs to products based on the benefit received from those activities.