. What is the major advantage of using a perpetual inventory system? a. It provides efficient internal control over materials. b. It avoids inventory shortages and overages. c. It avoids losses due to theft. d. It minimizes error in posting receipts and issues of materials.
. What is the major advantage of using a perpetual inventory system? a. It provides efficient internal control over materials. b. It avoids inventory shortages and overages. c. It avoids losses due to theft. d. It minimizes error in posting receipts and issues of materials.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. What is the major advantage of using a perpetual inventory system?
a. It provides efficient internal control over materials.
b. It avoids inventory shortages and overages.
c. It avoids losses due to theft.
d. It minimizes error in posting receipts and issues of materials.
2. If the 300 defective bolts(normal spoilage) were repaired and management wanted to be sure the incremental costs did not exceed the cost of producing new units, how would the rework costs be accounted for:
a. Charged to overhead and spread over the costs of all products.
b. Expensed as extraordinary.
c. Charged to those belts repaired.
d. As normal materials, labor and overhead.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education