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.

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Definitions:

Net Realisable Value

The projected sales price under normal business operations minus the anticipated expenses to complete and the estimated costs required for the sale.

AASB 102

An Australian Accounting Standard Board regulation that specifies the accounting treatment for inventories, defining the costing methods and recognition criteria.

Inventories

Inventory held with the aim of disposal in customary business dealings, including products in the creation process intended for such deals, or as raw goods or stock for consumption in generating products or executing services.

Invoice Terms

Conditions specified on an invoice, including payment deadlines, cash discount opportunities, and penalties for late payment.