If management wants to know the cost and quantity of goods on hand at all times, the business will probably:

Question

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Maintaining an inventory subsidiary ledger keeps track of the quantities and cost of goods on hand at all times. A periodic inventory system only requires taking physical inventory periodically, which may not provide real-time information. Taking a complete physical inventory each day is time-consuming and unnecessary, and debiting all purchases of goods directly to the Cost of Goods Sold account would not provide an accurate representation of inventory levels.

If Management Wants to Know the Cost and Quantity of Goods