The Periodic Inventory System Has Traditionally Been Used Most Commonly

question 31

Multiple Choice

The periodic inventory system has traditionally been used most commonly by companies that sell

• A)low-priced,high-volume merchandise.
• B)low-priced,low-volume merchandise.
• C)high-priced,low-volume merchandise.
• D)high-priced,high-volume merchandise.

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Definitions:

Cost of Goods Sold

The immediate expenses related to the creation of products sold by a business, which include costs for materials and labor.

Merchandising Firm

A business that purchases goods and resells them at a profit without changing their basic form.

Manufacturing Firm

A business engaged in the industrial production of goods from raw materials through the use of labor and machinery.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.