If an internal service fund is created to improve the management of resources devoted to the supply function,the supplies fund should use periodic inventory accounting instead of perpetual physical inventory accounting.

Question

Quizplus · Accepted Answer

Perpetual inventory accounting is needed to efficiently manage the supply function. (Items of low value which are not critical to the operations of any of the governmental departments may, however, properly be accounted for on a periodic physical inventory basis).

If an Internal Service Fund Is Created to Improve the Management