Under the perpetual inventory system,
A) continuous records of the quantity and cost of inventory items are kept as they are bought and sold.
B) up-to-date information about product availability is more accessible to managers.
C) the cost of inventory items purchased for resale is recorded in the Merchandise Inventory account.
D) all of these are correct.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, continuous records of the quantity and cost of inventory items are kept as they are bought and sold. This enables up-to-date information about product availability to be more accessible to managers. Additionally, the cost of inventory items purchased for resale is recorded in the Merchandise Inventory account. Therefore, all of the choices are correct.

Under the Perpetual Inventory System