The Costs of an Automated Perpetual Inventory System Are Considerable

question 150

True/False

The costs of an automated perpetual inventory system are considerable because they include the costs of automating the system,maintaining the system,and taking a physical inventory.

---

Definitions:

Estimated Life

The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.

Capital Expenditure

Long-term investment spent on acquiring or maintaining fixed assets, such as equipment, buildings, or land.

Company Truck

A vehicle owned by a business, used for the company's operations or logistical needs.

Company Car

A vehicle provided by a company for the business and sometimes personal use of its employees.