A periodic physical inventory count:
A)is not necessary if the business owner uses a perpetual inventory control system or has a computerized point of sale (POS)terminal.
B)typically involves one employee and is done weekly.
C)allows the owner to evaluate the effectiveness and the accuracy of his/her inventory control system.
D)is not necessary if the business owner uses an ABC inventory system.

Question

Quizplus · Accepted Answer

A periodic physical inventory count allows the business owner to evaluate the effectiveness and accuracy of their inventory control system. While a perpetual inventory control system or computerized POS terminal may assist in inventory management, a physical inventory count is still necessary to ensure the system is functioning correctly. The frequency of the inventory count will depend on the size and complexity of the business but is typically done on a monthly or quarterly basis. An ABC inventory system is not related to the need for a periodic physical inventory count.

A Periodic Physical Inventory Count