Benefits of maintaining inventory records on a perpetual basis include all of the following except:

Question

Quizplus · Accepted Answer

Maintaining inventory records on a perpetual basis does not eliminate the need for physical counts entirely. While it can reduce the frequency and scope of physical counts, periodic physical counts are still necessary to ensure the accuracy of the perpetual records. Therefore, option B is the correct answer as it claims the benefit of avoiding annual physical counts, which is not entirely true. The other options, A, C, and D, are all correct benefits of maintaining inventory records on a perpetual basis.

Benefits of Maintaining Inventory Records on a Perpetual Basis Include