The Use of Computers Has Been a Breakthrough for the Perpetual

question 61

Multiple Choice

The use of computers has been a breakthrough for the perpetual inventory system. Many retail businesses use optical-scan cash registers to read ____________. The scanners record the sale and, at the same time, update the inventory records with the cost of the sale.

• A) price lists
• B) barcodes
• C) cash register tapes
• D) the goods

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Definitions:

Segment Margin

The amount of profit or loss produced by a particular segment of a business, considering only the revenues and expenses directly attributable to that segment.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profit.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of production.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production in a company.