A Perpetual Inventory System Is Preferable to a Periodic System

question 34

Multiple Choice

A perpetual inventory system is preferable to a periodic system if adequately controlled and maintained because of which of the following?

• A)It requires that a full inventory count be taken at year-end by all warehouse employees.
• B)It allows management to calculate cost of goods sold at year-end.
• C)It provides information to management where book inventory is continuously in agreement with inventory on hand within specified time periods.
• D)It better controls the receipt of goods.

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