Which one of the following is correct?
A) Inventory losses can be identified and controlled better under the perpetual system.
B) The perpetual system eliminates the need for an annual inventory count.
C) There is no difference in cost to implement a perpetual as compared to a periodic system.
D) Inventory can only be sold at the end of an accounting period under the periodic system.

Question

Quizplus · Accepted Answer

The perpetual system allows for continuous monitoring and recording of inventory levels, making it easier to identify and control losses.

Answer: B
 The perpetual system provides real-time information on inventory levels, eliminating the need for an annual inventory count.

Answer: C
 There may be additional costs associated with implementing a perpetual system, such as software and hardware costs, compared to a periodic system that relies on manual inventory counts.

Answer: D
 Inventory can be sold at any time under both the perpetual and periodic systems. The timing of sales is not determined by the accounting system used.

Which One of the Following Is Correct