The main aspect of the perpetual method of accounting for inventory is:
A) a stocktake is performed.
B) it is useful for high value, low volume items.
C) cost of sales is calculated at the end of the accounting period.
D) all movements in each item of stock are tracked via detailed inventory records.

Question

Quizplus · Accepted Answer

The perpetual method of accounting for inventory involves keeping detailed inventory records that track all movements in each item of stock. This allows for accurate and up-to-date cost of sales calculations, making it useful for businesses with high volume and/or frequent inventory movement. While a stocktake may still be performed to ensure the accuracy of the records, it is not the main aspect of this accounting method.

The Main Aspect of the Perpetual Method of Accounting for Inventory