Asked by Brandon Pimentel on May 05, 2024
Verified
When using this system, a physical inventory is necessary to determine cost of goods sold.
A)Perpetual
B)Periodic
Physical Inventory
The process of counting the actual inventory on hand at the end of an accounting period, usually for verification purposes.
Inventory System
A system for tracking inventory levels, orders, sales, and deliveries, which can be manual or technologically driven, helping businesses manage their stock efficiently.
Cost Of Goods Sold
The total cost associated with making or buying products that a company has sold during a specific period.
- Distinguish between perpetual and periodic inventory systems and their impacts on inventory accounting.
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Learning Objectives
- Distinguish between perpetual and periodic inventory systems and their impacts on inventory accounting.
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