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a) Companies determine cost of goods sold only at
the end of the accounting period.
b) Companies continuously maintain detailed records
of the cost of each inventory purchase and sale.
c) The periodic system provides better control over
inventories than a perpetual system.
d) The increased use of computerized systems has
increased the use of the periodic system.
Thanks for Inviting:
a) Companies determine cost of goods sold only at
the end of the accounting period
Answer is
a) Companies determine cost of goods sold only at the end of the accounting period.
Statement a) is True
Disadvantage of the periodic inventory system is that the exact amount of inventory shortage cannot be determined. The amount is buried in cost of goods sold.
A. Company determine cost of goods sold only at the end of accounting period
agreed with option B as responded above
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