If a company uses a standard cost system,inventory records can be updated from the
A)vendor invoice
B)purchase order
C)receiving report
D)purchase requisition

Question

Quizplus · Accepted Answer

In a standard cost system, inventory records are updated based on the actual cost of goods received. The receiving report provides the physical evidence of the receipt of goods and the quantity received. This document is used to update inventory records with the actual cost of goods received as well as any applicable variances from the standard cost. A vendor invoice may be used to record the financial transaction but may not provide accurate details about the actual cost of goods received. A purchase order and purchase requisition are not directly related to the physical receipt of goods and therefore cannot be used to update inventory records.

If a Company Uses a Standard Cost System,inventory Records Can