Asked by Brandon Ramdeholl on Jun 12, 2024
Verified
If a company determines cost of goods sold each time a sale occurs it
A) must have a computer accounting system.
B) uses a combination of the perpetual and periodic inventory systems.
C) uses a periodic inventory system.
D) uses a perpetual inventory system.
Perpetual Inventory System
An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
Sale Occurs
The point at which a transaction is recognized, involving the transfer of goods or services from a seller to a buyer for money.
- Differentiate between the characteristics of perpetual and periodic inventory systems.
Verified Answer
AZ
Adnan ZafarJun 15, 2024
Final Answer :
D
Explanation :
In a perpetual inventory system, cost of goods sold is determined each time a sale occurs as the system continuously updates inventory levels and costs.
Learning Objectives
- Differentiate between the characteristics of perpetual and periodic inventory systems.
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