Why do most manufacturers use a perpetual inventory system?

Question

Quizplus · Accepted Answer

A perpetual inventory system provides real-time tracking of inventory levels and costs, which is important for cost accounting purposes. It allows manufacturers to have immediate access to inventory levels, which helps them better manage production and order materials as needed. Additionally, it allows for accurate inventory valuations, which is required for financial reporting purposes. While it is not a requirement for all manufacturers or Canadian companies, it is generally accepted accounting principles to use a perpetual inventory system.

Why Do Most Manufacturers Use a Perpetual Inventory System