The perpetual inventory system is a system which:

Question

Quizplus · Accepted Answer

The perpetual inventory system continuously updates inventory records for each purchase and sale, including returns and discounts. It does require physical inventory counts periodically to verify records due to possible discrepancies such as theft or damage, which are not automatically recorded by the system. Choices A and B are incorrect because the perpetual system updates inventory continuously, not just at the end of each period, and it can use various costing methods, not just LIFO.

The Perpetual Inventory System Is a System Which