The cost of goods sold can be determined only after a physical count of inventory on hand under the
A)perpetual inventory system
B)variable costing system
C)moving average system
D)periodic system

Question

Quizplus · Accepted Answer

The periodic system requires a physical count of inventory to determine the cost of goods sold. In contrast, under the perpetual inventory system, the cost of goods sold is updated continuously as inventory is sold, and the moving average system computes an average cost per unit based on all purchases and beginning inventory. The variable costing system does not directly relate to determining the cost of goods sold.

The Cost of Goods Sold Can Be Determined Only After