A shortage occurs in a replenishment cycle
A) only if the demand during the lead time exceeds the ROP.
B) only if the demand during the lead time is less than the ROP.
C) only if the demand during the lead time exceeds the average demand.
D) only if the demand during the lead time is less than the average demand.
Answer: A
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Which of the following is not one of the classes of transactions in the acquisition and payment cycle?
A) acquisition of common stock B) acquisition of goods and services C) cash disbursements D) purchase returns and allowances and purchase discounts
Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $598,000. The net realizable value is $670,000
Before any adjustments at the end of the period, the cost of goods sold account has a balance of $920,000. Which journal entry is required under U.S. GAAP? A) debit Cost of Goods Sold for $50,000 and credit Inventory for $50,000 B) debit Inventory for $50,000 and credit Cost of Goods Sold for $50,000 C) debit Cost of Goods Sold for $22,000 and credit Inventory for $22,000 D) debit Inventory for $22,000 and credit Cost of Goods Sold for $22,000