The inventory system where a business continually maintains a cost record of each item in stock
A) Periodic Inventory System
B) Perpetual Inventory System
C) Inventory Cost Control System
D) None of the above.

Question

Quizplus · Accepted Answer

The description matches the Perpetual Inventory System, where the cost of each item is continuously updated, providing a real-time view of inventory value. The Periodic Inventory System only updates inventory levels periodically, and the Inventory Cost Control System is not a commonly used term in inventory management. Therefore, the best choice is B.

The Inventory System Where a Business Continually Maintains a Cost