The Detailed Records of Purchases and Sales Maintained Under the Perpetual

question 73

Multiple Choice

The detailed records of purchases and sales maintained under the perpetual inventory system make which costing method more practical than when a periodic system is used?

• A)Specific identification
• B)Average-cost
• C)LIFO
• D)FIFO

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Definitions:

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Deductive Reasoning

An intellectual procedure where an inference is made based on the harmony of various statements, which are usually taken as facts.

Positive Correlation

A relationship between two variables where they move in the same direction.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.