For a company that uses a perpetual inventory system,a physical count of the inventory can reveal the amount of inventory shrinkage the company has experienced.

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Quizplus · Accepted Answer

This is true. When a physical count of the inventory is conducted, the actual quantity of inventory on hand is compared to the amount recorded in the accounting records. Any difference between these two amounts represents inventory shrinkage, which can be caused by factors such as theft, damage, or errors in record-keeping. By identifying and quantifying the amount of inventory shrinkage, the company can take steps to address the underlying causes and improve its inventory management practices.

For a Company That Uses a Perpetual Inventory System,a Physical