Which of the Following Is a Not a Limitation of the Use

question 33

Multiple Choice

Which of the following is a not a limitation of the use of a periodic inventory system by a manufacturer?

• A) A physical stocktake is necessary before costing information can be determined.
• B) Costing information is not available before the end of the accounting period.
• C) The costing information contains estimations and approximations.
• D) The method is more expensive to implement than the perpetual method.

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Definitions:

Monetary Policy

Central bank policies aimed at influencing economic activities through controlling interest rates and supply of money.

Reserve Requirement

The Reserve Requirement is a central banking regulation that sets the minimum amount of reserves each bank must hold as a proportion of its deposits, a tool used to control the money supply.

Open Market Operations

Activities by a central bank to buy or sell government securities in the open market to influence the money supply and interest rates.

Reserve Requirement

A regulation set by central banks that specifies the minimum amount of reserves a bank must hold in relation to customer deposits.