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

Question

Quizplus · Accepted Answer

The use of a perpetual inventory system allows a company to determine the cost of goods sold each time a sale occurs, as it continuously updates inventory records including sales and purchases.

If a Company Determines Cost of Goods Sold Each Time