Explain the differences between the perpetual and periodic inventory systems in terms of inventory quantity and cost.

Question:

Explain the differences between the perpetual and periodic inventory systems in terms of inventory quantity and cost. Does the use of a perpetual system eliminate the need for taking a physical inventory count?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

See More Books

Question Posted: Mar 10, 2012 06:14 AM

See More Questions

Explain the differences between a perpetual and a periodic inventory system. Include in your explanation why the words "perpetual" and "periodic" are used for the two systems.
Perpetual and Periodic Inventory Systems From the following list, identify whether the merchandisers described would most likely use a perpetual or a periodic inventory system. ____________ Appliance...
Explain the differences between linear, surface, and volume charge densities, and give examples of when each would be used.
Molybdenum forms a substitutional solid solution with tungsten. Compute the weight percent of molybdenum that must be added to tungsten to yield an alloy that contains 1.0 10 22 Mo atoms per cubic...
The Sarbanes-Oxley Act of 2002 (SOX) was drafted in response to the much publicized accounting scandals such as Enron, WorldCom, etc. Conduct research on the SOX Act and prepare an essay that...
For the parabolic arch in Figure P6.17, plot the variation of the thrust $T$ at support $A$ for values of $h=12$, $24,36,48$, and $60 \mathrm{ft}$. T w = 6 kips/ft 60'- B hinge 60 h
Recommend a technique that Family Services can use to evaluate how much of their time is being spent on a relatively few number of clients. LO.1
1. Describe the experiential learning process that companies mentioned in this case study apply to learn from their mistakes and failures. 2. What perceptual problems do managers need to overcome...
Preferred stock is called preferred because it usualy has two preferences over common stock. These preferences relate to: Multipie Choice: Payment of dividents and voting tights Higher par value and...
How different is the NEO Window Shopping script from the traditional window shopping script? How many different analogous scripts would consumers have to draw on to build their expertise in using the...
What are the cost components of each of the three inventory accounts of a manufacturing company?
What is the general rule used to determine if a company includes an item in inventory? Apply the concept to the accounting for goods in transit and goods on consignment.
What aromatic products would you obtain from the KMnO4 oxidation of the followingsubstances? (a) O2N. (b) C(CH3)3 CH(CH3)2 "
For the data in Problem 42, how would you predict demand for medical kits using (a) moving averages and (b) exponential smoothing (with alpha values equal to 0.5 and greater) for the 21st week? Data...
For a light ray that crosses the interface between medium 1 having index of refraction $n_{1}$ and medium 2 having index of refraction $n_{2}$, what relationship between $\theta_{1}$ and...
The atmosphere of the planet Venus is almost entirely composed of carbon dioxide (about 96.5 % carbon dioxide). The carbon dioxide on Venus might be in equilibrium with carbonate ions in minerals on...
Seniority quantum numbers typically measure how many fermions are in some sense "not paired" with another fermion. For the quasispin model of Problem 31.3 , define the Racah seniority $v$ through...
(a) Place a perfectly conducting sphere with radius a in a uniform electric field E 0 and let an origin centered electric dipole field represent the field produced by the sphere. Use this information...
Multiple regression results from the data of Yamahonda Motors Company (exercise 10-19) are as follows: Assume that management predicts the materials cost to be $5,000 and machinehours to be 190 for...
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
Describe the given set in spherical coordinates. x 2 + y 2 + z 2 100
(EPS with Convertible Bonds and Preferred Stock) The Ottey Corporation issued 10-year, $4,000,000 par, 7% callable convertible subordinated debentures on January 2, 2010. The bonds have a par value...
(EPS with Convertible Bonds and Preferred Stock) On January 1, 2010, Lindsey Company issued 10-year, $3,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Lindsey...
(EPS with Options, Various Situations) Zambrano Companys net income for 2010 is $40,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2009, each exercisable...
Simpson Ltd is a small IT company, which has 2 million shares outstanding and a share price of $20 per share. The management of Simpson plans to increase debt and suggests it will generate $3 million...
The following are the information of Chun Equipment Company for Year 2 . ( Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated. ) Salaries...
Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inventory, January 1, 2018 1,250 units...

Explain the differences between the perpetual and periodic inventory systems in terms of inventory quantity and cost.

Question:

Step by Step Answer:

Under a perpetual inventory system a company keeps a continuous record of the physical quantities in ...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions