Under the perpetual inventory method, the merchandise inventory account is updated
a. at the end of the period; b. whenever merchandise is purchased; c. at the beginning of the period; d. every time a physical inventory is taken; e. when the income statement is prepared.
B
You might also like to view...
Mug Shots operates a chain of coffee shops. The company pays rent of $15,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The cost of rent relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively?
A. Fixed cost and fixed cost B. Fixed cost and variable cost C. Variable cost and fixed cost D. Variable cost and variable cost
The following information is available for Delta Department of Ronen Company for the month of October: All materials are added at the beginning of the process. Using the average cost method, the cost (rounded to two places) per equivalent unit for materials is:
a. $1.60 b. $2.00 c. $1.92 d. $2.40
Which of the following statements regarding service companies and activity-based costing (ABC) is true?
A) Service companies are not permitted to use ABC costing. B) Service companies find it easier to use ABC costing than manufacturing companies. C) Fewer repetitive activities make ABC costing more difficult to implement in service companies. D) Service companies have proportionately less facility-level costs than manufacturing companies.
Strategies for mitigating the bullwhip effect include ______.
A. channel alignment B. restricting information flows C. reducing inventory D. increasing price