A Company Using the Periodic Inventory System Has the Following

question 34

Multiple Choice

A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $3,600; Freight In, $650; Purchases, $10,700; Purchases Returns and Allowances, $1,950; Purchases Discounts, $330. The cost of merchandise purchased is equal to

• A) $12,670
• B) $9,070
• C) $8,420
• D) $17,230

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Definitions:

Horizontal Communication

The exchange of information between individuals or units of an organization at the same hierarchical level, aimed at coordination and collaboration.

Organizational Structure

The system used to define a hierarchy within an organization, specifying roles, responsibilities, and the flow of information.

External Uncertainty

The unpredictability in an organization's external environment that can affect its operations and performance, including economic, social, and political factors.

Internal Uncertainty

Uncertainty that originates within an organization due to factors like unclear objectives, lack of managerial direction, or unpredictable environments.