In the Periodic Inventory System,ending Inventory Is Determined by Taking

question 46

True/False

In the periodic inventory system,ending inventory is determined by taking an actual physical count of goods on hand on the last day of the accounting period; beginning inventory for the next period is determined by taking another physical count of goods on the first day of the new period.

---

Definitions:

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Cost Element

A cost that varies directly with the level of production or sales volume, such as materials and direct labor.

Fixed Cost Element

The portion of total costs that does not change with the variation in activity level or production volume.

CVP Analysis

Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.