The Assignment of Costs to Cost of Goods Sold and Inventory

question 97

True/False

The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used.

---

Definitions:

Distribution Density

The measure of how widely and closely a product or service is made available to potential customers through various retail outlets or distribution channels.

Specified Geographical Area

A distinct region or zone designated for certain activities, operations, or jurisdictional purposes.

Selective Distribution

A strategy where a product is distributed through a limited number of channels or retailers to maintain a certain brand image or exclusivity.

Distribution Density

The measure of the number of distribution points or outlets a product has within a given area.