How Often Must a Transition Plan Be Updated and Re-Evaluated

question 1

Multiple Choice

How often must a transition plan be updated and re-evaluated?

• A) Every 6 months
• B) Every year
• C) Every two years
• D) On a continuous basis

---

Definitions:

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Periodic Inventory System

A method used in accounting to update inventory and cost of goods sold periodically at the end of each accounting period rather than after each sale.

Weighted-Average Method

A cost flow assumption used in inventory accounting that calculates the cost of goods sold based on an average cost of inventory items.

Cost of Goods Sold

The total cost directly linked to the production of the products sold by a company, including materials and labor.