Under the Perpetual Inventory System,in Addition to Making the Entry

question 68

Multiple Choice

Under the perpetual inventory system,in addition to making the entry to record a sales return by a customer,a company would

• A)increase Merchandise Inventory and decrease Cost of Goods Sold.
• B)increase Cost of Goods Sold and decrease Purchases.
• C)increase Cost of Goods Sold and decrease Merchandise Inventory.
• D)make no additional entry until the end of the period.

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Definitions:

Actual Performance

Refers to the real, observed outcomes or results achieved by an individual, team, or organization, as opposed to projected or expected performance.

Equal To Standard

Equal to standard implies that a process, product, or performance measures up to established benchmarks or criteria of quality and efficiency.

Planning

The process of setting objectives and determining how to accomplish them.

Control Process

The systematic effort within an organization to guide activities towards meeting goals and objectives, typically involving establishment, monitoring, and adjusting of standards.