Witt Company, like most manufacturers, maintains a continuous record of purchases, materials issued into production and balances of all goods in stock, so that inventory valuation data is available at any time. This is an example of a(n)
A)perpetual inventory system.
B)inventory control account.
C)periodic inventory system.
D)inventory cost method.

Question

Quizplus · Accepted Answer

A perpetual inventory system maintains a continuous record of purchases, issues and inventory balances. A periodic inventory system requires a physical count of all inventory at the end of the year and estimates of inventory balances throughout the year when preparing interim financial statements.

Witt Company, Like Most Manufacturers, Maintains a Continuous Record of Purchases