Reference no: EM132680039

Problem 1: Which of the following statements regarding inventory accounting is false?

Multiple Choice

Option 1: The use of computerized optical scanning equipment has led to the adoption of perpetual inventory systems in high-volume settings.

Option 2: The inventory carrying cost should include storage costs.

Option 3: A manufacturing firm that uses a just-in-time system, and wants to avoid "stock-outs" if possible, would prefer a periodic inventory system.

Option 4: Inventory carrying cost should include transportation costs that are paid by the purchaser.

Problem 2: Examples of variable costs include all the following except:

Multiple Choice

Option 1: the plant manager's salary.

Option 2: direct labor costs.

Option 3: electricity used in running production machinery.

Option 4: · raw materials costs.