Asked by Chris Turner on May 03, 2024
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In a periodic inventory system, the cost of merchandise purchased includes the cost of freight in.
Periodic Inventory System
An inventory system that updates the inventory balance at specific intervals, necessitating physical counts.
Cost of Merchandise
The total purchase cost of goods that a retailer, wholesaler, or distributor has bought for the purpose of reselling.
Freight In
The cost associated with transporting goods from the supplier to the buyer, typically recorded as part of the inventory cost.
- Understand the variance in managing inventory accounts in a merchandising enterprise.
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Learning Objectives
- Understand the variance in managing inventory accounts in a merchandising enterprise.
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