객관식
In financial accounting, what does COGS stand for?
198
views
4. Merchandising Operations
Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
객관식
Under the perpetual inventory system, how is the Cost of Goods Sold (COGS) determined when inventory is sold?
A
COGS is calculated only at the end of the accounting period based on a physical count.
B
COGS is not recorded until payment is received from customers.
C
COGS is updated continuously with each sale, reflecting real-time inventory changes.
D
COGS is determined by averaging the cost of all inventory purchases during the year.
검증된 단계별 안내1
Understand the perpetual inventory system: This system continuously updates inventory records and Cost of Goods Sold (COGS) in real-time as transactions occur, rather than waiting until the end of the accounting period.
Recognize the key feature of perpetual inventory systems: When inventory is sold, the system immediately records the reduction in inventory and calculates the COGS based on the cost of the specific items sold.
Identify how COGS is calculated: Under the perpetual system, the cost of the sold inventory is determined using methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or weighted average cost, depending on the company's chosen inventory valuation method.
Understand the real-time nature of updates: Each sale triggers an automatic update to both the inventory account and the COGS account, ensuring that financial records reflect the most current data.
Compare with other systems: Unlike the periodic inventory system, which calculates COGS at the end of the accounting period based on a physical count, the perpetual system provides continuous tracking and immediate updates to COGS.
관련 영상
관련 실천
