Companies using a perpetual inventory system:
A)never physically count their inventory.
B)must physically count their inventory at least once a week.
C)still need to count the physical inventory occasionally.
D)always know the actual amount in inventory from their accounting records.

Question

Quizplus · Accepted Answer

Even with a perpetual inventory system, companies still need to occasionally physically count their inventory to ensure the accuracy of their records. While the perpetual system tracks inventory in real-time, there may be discrepancies due to theft, damage, or errors in recording transactions. Therefore, physical counts must still be conducted periodically to reconcile any differences and ensure that the accounting records reflect the actual inventory on hand.

Companies Using a Perpetual Inventory System