Which of the following statements is true?
A)Inventory losses can be identified and controlled better under the perpetual system.
B)Inventory can only be sold at the end of an accounting period under the periodic system.
C)There is no difference in cost to implement a perpetual as compared to a periodic system.
D)The perpetual system eliminates the need for an annual inventory count.

Question

Quizplus · Accepted Answer

Under the perpetual system, inventory losses can be identified and controlled in real-time as compared to the periodic system where losses may go unnoticed until the end of the accounting period. This is because the perpetual system records inventory transactions continuously, providing visibility into inventory levels and enabling prompt action to reduce losses.

Which of the Following Statements Is True