Under the perpetual inventory system an inventory loss can be calculated as the difference between:

Question

Quizplus · Accepted Answer

The perpetual inventory system keeps track of inventory in real-time, so the ledger balance of the inventory account should reflect the actual inventory on hand. Any discrepancy between the ledger balance and the physical stocktake would indicate an inventory loss. Therefore, choice A is the correct answer. Choice B is incorrect because it calculates gross profit, not inventory loss. Choice C is incorrect because it calculates the change in inventory value over a period of time, not inventory loss. Choice D is incorrect because the perpetual inventory system can track inventory losses.

Under the Perpetual Inventory System an Inventory Loss Can Be