Which of the following general statements about inventory is true

Question

Which of the following general statements about inventory is true -
A)Sage 50 Accounting uses a weighted average perpetual inventory method as the default method of costing
B)the selling price refers to a single unit,while value refers to cost of the entire stock
C)a variance account adjusts the difference between cost of an item sold and the new purchase price
D)all of the above

Quizplus · Accepted Answer

All the statements provided are true regarding inventory. Sage 50 Accounting indeed uses a weighted average perpetual inventory method as its default costing method. The selling price typically refers to the price of a single unit, whereas the value often refers to the total cost of the entire stock on hand. A variance account is used to adjust for differences between the cost of an item sold and its new purchase price, reflecting changes in cost in the financial records.