Asked by Mayra Tirado Hernandez on May 21, 2024
Verified
Average cost is rarely used with this system.
A) Perpetual
B) Periodic
Inventory System
A method or software used by businesses to track stock levels, orders, sales, and deliveries to efficiently manage their inventory.
Average Cost
A calculation that determines the total cost of goods available for sale divided by the total units available for sale, providing a mean cost per unit.
- Understand the differences and uses of the perpetual and periodic inventory systems.
Verified Answer
ZN
zishan naziaMay 24, 2024
Final Answer :
A
Explanation :
Average cost works best with a perpetual inventory system, where inventory is constantly tracked and updated. Periodic inventory systems rely on physical counts and calculations at set intervals, making it difficult to accurately assess average cost.
Learning Objectives
- Understand the differences and uses of the perpetual and periodic inventory systems.
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