Witt Company Maintains a Continuous Record of Purchases,materials Issued into Production

question 60

Multiple Choice

Witt Company maintains a continuous record of purchases,materials issued into production and balances of all goods in stock,so that inventory valuation data is available at any time.This is an example of a(n)

• A)perpetual inventory system.
• B)inventory control account.
• C)periodic inventory system.
• D)inventory cost method.

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Definitions:

Effective Immediately

A term indicating that something is to be applied or become operative from the moment it is declared.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from price gouging.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, resulting in market equilibrium.

Market-Determined Price

A price outcome established through the interaction of supply and demand, without external controls.