Asked by giannah alessandra on May 13, 2024
Verified
A perpetual inventory system is an effective means of control over inventory.
Perpetual Inventory System
The inventory system in which each purchase and sale of merchandise is recorded in an inventory account.
Control Over Inventory
The process of managing and regulating the supply, storage, and accessibility of inventory to ensure sufficient quantities without excessive surplus.
- Identify the characteristics and benefits of perpetual and periodic inventory systems.
Verified Answer
JG
Joselinne GamezMay 14, 2024
Final Answer :
True
Explanation :
A perpetual inventory system maintains a continuous record of inventory levels, allowing for accurate and timely tracking of inventory movements and levels. This can help prevent stockouts, minimize storage costs, and reduce the risk of inventory shrinkage or loss.
Learning Objectives
- Identify the characteristics and benefits of perpetual and periodic inventory systems.
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