A cost accounting system uses which of the following inventory systems?

Question

Quizplus · Accepted Answer

A cost accounting system typically uses a perpetual inventory system, which involves updating inventory records continuously as goods are bought and sold, to provide real-time information about inventory levels and costs. A periodic system involves taking physical inventory counts at regular intervals and then updating inventory accounts accordingly. While a cost accounting system may still use periodic inventory counts for auditing purposes, the primary system for tracking inventory and costs is typically perpetual. "Both a periodic and perpetual system" is not a correct answer because a cost accounting system may have periods where it does physical inventory checks but this is not the primary way to track inventory for these companies. "A hands-on system" is not a valid answer choice for this question because it is not a relevant inventory system.

A Cost Accounting System Uses Which of the Following Inventory