Question

Cost accounting systems used by manufacturing companies are based on the: Multiple Choice Periodic inventory system. Perpetual inventory system. Finished goods inventories. Weighted average inventories. LIFO inventory system.

Answer 1

Perpetual inventory system.

Step-by-step explanation:

The cost accounting refers to managing the cost of the company so that the company could able to produced their goods at the lowest cost

Now in the case of a manufacturing company, various things can be calculated like - the cost of goods sold, ending work in process, etc

The perpetual inventory system refers to the system in which the inventory is updated on a regular basis while on the other hand periodic inventory system refers to the system in which the company updated their inventory counts in periodic or particular period only

So here the manufacturing company based on perpetual inventory system so that it can trace the cost in an effective manner