Which Statement Relating to the Determination of the Cost of Inventory

question 10

Multiple Choice

Which statement relating to the determination of the cost of inventory in a computerised system is not true?

• A) Determining the cost of inventory is greatly simplified compared to a manual system.
• B) Computerised systems generally use the periodic inventory system.
• C) Computerised inventory systems are now used by most firms.
• D) The system can automatically produce reorder information.

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Definitions:

Consensus

An element of a valid contract; both parties must objectively know and agree to its terms through an offer and an acceptance.

Rectification

The legal process of correcting a mistake in a document to reflect the true intentions of the parties involved.

Breach of Contract

The violation of a contractual obligation by failing to perform one's own promise, by impeding another party's performance, or by otherwise making performance impossible.

Adhesive

Pertains to contracts or clauses that are one-sided or unfairly advantageous to one party, typically presented on a "take it or leave it" basis.