A factor that might suggest that a perpetual inventory system is appropriate is that inventory includes many different kinds of low-cost items.

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A perpetual inventory system is more suited for businesses with high-value items or a large volume of sales, as it provides real-time tracking of inventory levels. For many different kinds of low-cost items, a periodic inventory system might be more cost-effective and practical.

A Factor That Might Suggest That a Perpetual Inventory System