A Durable Good

question 5

Multiple Choice

A durable good

• A) has a life span of more than 3 years.
• B) is used up within 3 years.
• C) applies only to services.
• D) is an intangible commodity.

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Definitions:

Perpetual

Continuing indefinitely without interruption; in accounting, it often refers to systems that continuously update inventory or records.

Inventory System

A method or system used to plan, organize, and control the goods or materials that are held in stock, ensuring efficient management and use of inventory.

Costly

Involving high expenses; describing something that requires significant financial outlay.

Periodic Inventory Systems

Periodic Inventory Systems is an inventory management method where inventory levels are updated and physical counts are conducted at specific intervals, typically at the end of an accounting period.