Which of These Is a Not a Limitation of the Use

question 21

Multiple Choice

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

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

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Definitions:

Mortgagor

The party who borrows money and gives a mortgage to the lender or mortgagee as security for the loan.

Collateral

The property that is subject to a security interest.

Assumes Debt

When an individual or entity takes on the legal obligation to pay back a debt originally owed by another party.