A perpetual inventory system continually updates accounting records for inventory transactions.

Question

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In a perpetual inventory system, inventory transactions are immediately recorded in the accounting system, allowing for real-time tracking of inventory levels and cost of goods sold. This is in contrast to a periodic inventory system, where inventory records are only updated periodically (e.g. at the end of each month or year).

A Perpetual Inventory System Continually Updates Accounting Records for Inventory