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:

Compound Interest

The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest, making the sum grow at a faster rate than simple interest.

Earnings Rate

The rate at which a company or investment is generating income, typically expressed as a percentage of the investment or capital employed.

Inflation

A period when prices in general are rising and the purchasing power of money is declining.

Price Levels

General price indices reflecting the overall movement of prices within an economy over a period of time, affecting purchasing power and inflation rates.