Inventory losses are easier to identify under the perpetual inventory system than under the periodic inventory system.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, inventory levels are continually updated, and any losses or discrepancies are immediately identified. In contrast, under the periodic inventory system, adjustments to inventory are only made periodically, which can make it more difficult to identify inventory losses.

Inventory Losses Are Easier to Identify Under the Perpetual Inventory