Under which system must a determination of the "last in" units be evaluated at the time of each individual sale?

Question

Quizplus · Accepted Answer

In a perpetual system, inventory is updated continuously with each sale and purchase. Therefore, a determination of the "last in" units must be evaluated at the time of each individual sale to ensure that the cost of goods sold and ending inventory are accurately recorded. In a periodic system, inventory is only updated at the end of an accounting period, so determining the "last in" units at the time of each sale is not necessary.

Under Which System Must a Determination of the "Last In