Which of the Following Would Not Tend to Make a Manufacturer

question 115

Multiple Choice

Which of the following would not tend to make a manufacturer choose a perpetual inventory system?

• A)Management wants information about quantities of specific products.
• B)A low volume of sales transactions and a computerized accounting system.
• C)A high volume of sales transactions and a manual accounting system.
• D)Items in inventory with high per unit costs.

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Definitions:

Utility Bill

A regular invoice for essential services such as electricity, water, gas, or telecommunications provided to individuals or businesses.

Journal Entries

The record of financial transactions as they occur, detailing the accounts that are affected and in what way.

Receipt

A document acknowledging that a payment has been made or that goods have been received.

Supplies Expense

The cost associated with consumable items used during the process of operating a business, recorded as an operating expense on the income statement.