The perpetual inventory method of tracking inventory is considered superior to the periodic method because the perpetual method:
A)makes calculations easier and less technology can be deployed.
B)tells what inventory a company should have on hand at any point in time.
C)saves a company from ever having to count the goods in inventory.
D)is more consistent with how companies calculated inventory in the past.

Question

Quizplus · Accepted Answer

The perpetual inventory method is considered superior to the periodic method because it provides an updated inventory account balance after every purchase,sale and return of inventory during the period.

The Perpetual Inventory Method of Tracking Inventory Is Considered Superior