In Order to Calculate Shrinkage

question 21

Multiple Choice

In order to calculate shrinkage:

• A)both periodic and perpetual inventory systems are needed.
• B)a periodic inventory system is most effective.
• C)a perpetual inventory system requires an occasional count of actual inventory.
• D)it does not matter which system one uses.

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Definitions:

Bilateral Contract

A type of contract involving two parties where each party has made a promise to the other.

Promise

An assurance given by one party to another, agreeing to do or not do something specified in the future.

Consideration

Consideration is a fundamental principle in contract law, referring to something of value exchanged between parties as part of an agreement.

Legal Value

Consideration or benefit recognized by law as sufficient to form a valid contract or enforceable obligation.