Which of the Following Is NOT an Advantage of the Perpetual

question 18

Multiple Choice

Which of the following is NOT an advantage of the perpetual over the periodic inventory method?

• A) A continuous record of inventory on hand is furnished.
• B) Inventory theft may be detected.
• C) Recording is simplified.
• D) The perpetual inventory system provides a continuous record of cost of goods sold.

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Definitions:

Riskier Conditions

Situations or environments that pose a higher likelihood of danger, harm, or loss, often requiring additional precautions or measures to ensure safety.

Higher Wages

Refers to an increase in the rate of payment for work done, often seen as a goal for labor negotiations or as a reflection of increased living costs.

High Risk Stocks

Equity investments that have a high potential for loss but also offer the possibility of significant returns.

High Returns

Investments or financial assets that yield a significantly higher than average rate of return or profit.