Which of the following statements regarding shrinkage is not true?

Question

Quizplus · Accepted Answer

The statement "It is easier to detect shrinkage in a periodic inventory system than in a perpetual inventory system" is not true. Perpetual inventory systems continuously track inventory levels, which can help managers detect and identify shrinkage on a real-time basis. In contrast, periodic inventory systems rely on physical inventory counts conducted periodically, and may not identify shrinkage until after significant losses have occurred.

Which of the Following Statements Regarding Shrinkage Is Not True