Which of the Following Is a Feature of the Perpetual

question 64

Multiple Choice

Which of the following is a feature of the perpetual inventory system?

• A) It is the method with the lowest cost for maintaining records.
• B) It maintains a constant record of the receipt and sale of inventory.
• C) It requires very little time for constant record keeping.
• D) It is the process of physically counting inventories on a set schedule.

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Definitions:

Peak Efficiency

The highest level of operational effectiveness where an entity or process operates at maximum capacity with minimal waste and expense.

Firm

An enterprise like a corporation, partnership, or sole proprietorship involved in commercial, industrial, or professional operations.

AFC

stands for Average Fixed Cost, which is the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.

Output Rises

Refers to an increase in the production level of goods and services over a certain period.