Continuous Inventory Systems Are Primarily Intended for Lower Cost Items

question 30

True/False

Continuous inventory systems are primarily intended for lower cost items because they are easier to use requiring fewer resources.

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Definitions:

Ordinary

Pertaining to regular or usual conditions, occurrences, or business activities that are not exceptional.

Section 1221

A section of the U.S. Internal Revenue Code that defines all real and personal property subject to depreciation as assets, excluding inventory.

Trade or Business

Regular, continuous, and substantial activities engaged in by an entity to generate income or profit.

FMV

Fair Market Value; the price an asset would sell for on the open market under current conditions.