Addison, Inc -Under the _____ Inventory Method, Accounting Records Maintain a Continuously

question 89

Multiple Choice

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
$\begin{array} { r l l } \text { Sept. } 1 & \text { Inventory } & 20 \text { units at } \$ 20 \\ 4 & \text { Sale } & 10 \text { units } \\ 10 & \text { Purchase } & 30 \text { units at } \$ 25 \\ 17 & \text { Sale } & 20 \text { units } \\ 30 & \text { Purchase } & 10 \text { units at } \$ 30 \end{array}$
-Under the _____ inventory method, accounting records maintain a continuously updated inventory value.

• A) retail
• B) periodic
• C) physical
• D) perpetual

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Definitions:

Expected Opportunity Loss

A statistical determination of potential loss due to not selecting the optimal choice among different options.

Gross Profits

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Rollback Technique

A decision analysis procedure used to solve decision trees backwards from the end nodes to the beginning, to find the sequence of decisions that maximizes the expected utility.