Asked by Julian Munoz on May 06, 2024
Verified
Under a perpetual inventory system, inventory purchases are entered in the Merchandise Inventory account at cost.
Perpetual Inventory System
An inventory management method where updates are made continually to record each sale or purchase of inventory.
- Undertake the recording of transactions in adherence to perpetual and periodic inventory system standards.
- Detail the traits and implementation areas of perpetual and periodic stock management systems.
Verified Answer
MB
mitchell berkeleyMay 13, 2024
Final Answer :
True
Explanation :
In a perpetual inventory system, inventory purchases are recorded directly in the Merchandise Inventory account at their purchase cost, continuously updating inventory levels and values.
Learning Objectives
- Undertake the recording of transactions in adherence to perpetual and periodic inventory system standards.
- Detail the traits and implementation areas of perpetual and periodic stock management systems.
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