Advances in Technology Have Greatly Reduced the Cost of a Perpetual

question 104

Essay

Advances in technology have greatly reduced the cost of a perpetual inventory system. What advantages does a perpetual inventory system have over periodic?

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Definitions:

Hedge Transaction

A financial transaction designed to reduce the risk of adverse price movements in an asset.

Spot Rates

The prevailing price for a specific currency that can be traded immediately.

Journal Entries

Journal entries are records of financial transactions in accounting, documented in chronological order, indicating accounts affected, amounts, and a brief description of the transaction.

Forward Rate

An agreed-upon price for a currency or asset to be exchanged at a future date, used for hedging or speculation.