A company determines the cost of goods sold each time A. a sale occurs in a periodic inventory system only. B. a perpetual inventory system only. C. both a periodic and perpetual inventory system. D. neither a periodic nor perpetual inventory system.

Question

Business

Alfonso Cordova

5 October, 10:07

A company determines the cost of goods sold each time A. a sale occurs in a periodic inventory system only. B. a perpetual inventory system only. C. both a periodic and perpetual inventory system. D. neither a periodic nor perpetual inventory system.

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Answers (1)

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Adrienne Cantu · Answer 1

The correct answer is B

Explanation:

Perpetual inventory system, it is the inventory management method, which records the real time transactions of the sold as well as received stocks by using the technology, usually considered a more effective as well as efficient method instead of the periodic inventory system.

When the company evaluated or determines the cost of the goods sold every time, when the sales happen or occur under the system of perpetual inventory.