If a company determines cost of goods sold each time a sale occurs, it
A)must have a computerized accounting system.
B)uses a combination of the perpetual and periodic inventory systems.
C)uses a periodic inventory system.
D)uses a perpetual inventory system.

Question

Quizplus · Accepted Answer

A company that determines the cost of goods sold each time a sale occurs uses a perpetual inventory system. This system continuously updates inventory records, including costs of goods sold, for each transaction.

If a Company Determines Cost of Goods Sold Each Time