Reports Generated by the Cost Accounting System Include Performance Reports

question 21

True/False

Reports generated by the cost accounting system include performance reports and budget reports.

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Definitions:

Weighted Average Cost

A method of inventory costing that assigns a weighted average cost to each unit of inventory on hand, based on the cost of goods available for sale and the number of units available.

Perpetual System

An inventory management approach that tracks the sale and purchase of inventory in real-time, providing a continuous account of inventory and cost of goods sold.

Perpetual LIFO

A method of inventory valuation where the last items acquired are the first considered sold in an ongoing, or perpetual, system.

Inventory Flow

The progression of goods through a business, typically from purchase or production to sale, characterized by methods such as FIFO, LIFO, and weighted average.