Which statement is not correct about the perpetual inventory system for inventory management?
A)This system keeps track of additions to and withdrawals from inventory.
B)It is not necessary to conduct an inventory count if the perpetual system is used.
C)This method produces timely information for management.
D)With this method, the company knows the inventory on hand and the related cost of goods sold at any point in time.

Question

Quizplus · Accepted Answer

Though the perpetual inventory system keeps continuous track of inventory levels, it is still necessary to conduct physical inventory counts periodically to ensure that the inventory records are accurate and to detect any discrepancies.

Which Statement Is Not Correct About the Perpetual Inventory System