A perpetual inventory system offers which of the following advantages?

Question

Quizplus · Accepted Answer

A perpetual inventory system tracks inventory in real-time, allowing businesses to easily determine the availability of products to fulfill customer orders simply by reviewing inventory records. This gives businesses greater control over inventory levels and can help prevent stockouts and backorders. It is generally more accurate and efficient than a periodic inventory system. Option A is incorrect because perpetual inventory system tracks inventory continuously without requiring a physical count. Option B is incorrect because the system is not based on the value of goods, but on tracking inventory levels. Option C is incorrect because periodic inventory system is usually less expensive than a perpetual system as it does not require continuous tracking of inventory.

A Perpetual Inventory System Offers Which of the Following Advantages