A physical inventory count is required under both the perpetual and periodic inventory systems.

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A physical inventory count is a process of physically counting and verifying the inventory on hand. It is required in both perpetual and periodic inventory systems to ensure the accuracy of inventory records and to identify any discrepancies that need to be corrected. In perpetual inventory systems, physical inventory counts can be used to reconcile the inventory records with actual inventory levels, while in periodic inventory systems, physical inventory counts are used as the basis for calculating the cost of goods sold and ending inventory balances.

A Physical Inventory Count Is Required Under Both the Perpetual