Explain When It Is Better to Use the Continuous Inventory

question 36

Essay

Explain when it is better to use the continuous inventory system and when it is better to use the periodic inventory system.Discuss how the ABC classification system provides guidance in selecting one versus the other.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, granting them ownership interests and typically some level of influence over the corporation's decisions.

Judgment

A court's final determination of the rights and obligations of the parties in a case.

Union Contract

A legally binding agreement between a labor union and an employer outlining the terms of employment, wages, benefits, and working conditions.

New Corporation

A business entity that has been recently formed and registered, embarking on its operational activities as a legal person.