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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Definitions:

Market Intelligence

The process of gathering, analyzing, and interpreting information about a market, including information about competitors, customers, and other market dynamics.

Intermediary

A third-party agent or entity that acts as a mediator or facilitator between two parties in a transaction, often involved in the distribution chain.

Supply Chain Surplus

The difference between the value a product provides to the customer and the cost of the supply chain in fulfilling that demand.

Supplier Selection

The process of assessing and choosing the most suitable suppliers based on criteria like cost, quality, service, and reliability.