# Project #90295 - Purchasing and Costs

1. Briefly describe how a perpetual inventory system works.

b. In most operations, it is too expensive to maintain a perpetual inventory for all items. However, it may be beneficial for some items. Which items would you like to keep on a perpetual-inventory basis? Why?

2. What is the main difference between theft and pilferage?

3. Given the following data, compute the food cost percentage:

Total Sales: \$500,000

Food Sales:75 percent of total sales

Beverage sales: 25 percent of total sales

Beginning food inventory: \$25,000

Ending food inventory:\$30,000

Total food purchases: \$200,000

Employee meal cost: \$6,000

4. If the beginning food inventory is \$12,500, the food purchases are \$40,000, and the food cost is \$47,500, what is the ending food inventory (dollar amount)?

 Subject Business Due By (Pacific Time) 10/25/2015 07:54 am
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