Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which type of inventory system is most directly impacted by the adoption of lean production methods?

Neither perpetual nor periodic inventory systems

Only the perpetual inventory system

Only the periodic inventory system

Both perpetual and periodic inventory systems

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Verified step by step guidance

Understand the concept of lean production methods: Lean production focuses on minimizing waste and improving efficiency in manufacturing processes. This often involves reducing inventory levels and adopting just-in-time (JIT) inventory practices.

Review the characteristics of perpetual inventory systems: A perpetual inventory system continuously updates inventory records in real-time as transactions occur, providing detailed and accurate tracking of inventory levels.

Review the characteristics of periodic inventory systems: A periodic inventory system updates inventory records at specific intervals, such as monthly or annually, rather than in real-time.

Analyze the impact of lean production methods on inventory systems: Lean production methods emphasize reducing excess inventory and maintaining minimal stock levels, which affects both perpetual and periodic inventory systems by requiring more precise tracking and adjustments.

Conclude that both inventory systems are impacted: Since lean production methods influence inventory management practices, both perpetual and periodic inventory systems must adapt to support the reduced inventory levels and just-in-time practices associated with lean production.