If a company determines cost of goods sold each time a sale occurs it
A) must have a computer accounting system.
B) uses a combination of the perpetual and periodic inventory systems.
C) uses a periodic inventory system.
D) uses a perpetual inventory system.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, cost of goods sold is determined each time a sale occurs as the system continuously updates inventory levels and costs.

If a Company Determines Cost of Goods Sold Each Time