Under a perpetual inventory system:

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In a perpetual inventory system, inventory levels are continuously updated through the use of computerized systems, barcodes, or other tracking methods. This allows for real-time monitoring and immediate identification of any shortages or overages in inventory levels. Therefore, it can be readily determined if there is a sufficient supply of inventory on hand at any given time, without the need for a physical count. However, a physical count may still be necessary to ensure the accuracy of the inventory records and to adjust for any discrepancies.

Under a Perpetual Inventory System