In a perpetual average cost system:
A) A new weighted-average unit cost is calculated each time additional units are purchased.
B) The cost allocated to ending inventory is generally the same as it would be in a periodic inventory system.
C) The moving-average unit cost is determined following each sale.
D) The average is determined by dividing the total number of units sold by the cost of units purchased during the period.

Question

Quizplus · Accepted Answer

In a perpetual average cost system, a new weighted-average unit cost is recalculated every time a purchase is made, reflecting the most current average cost of the inventory items.

In a Perpetual Average Cost System