Which Statement Is Not Correct About the Perpetual Inventory System

question 110

Multiple Choice

Which statement is not correct about the perpetual inventory system for inventory management?

• A)This system keeps track of additions to and withdrawals from inventory.
• B)It is not necessary to conduct an inventory count if the perpetual system is used.
• C)This method produces timely information for management.
• D)With this method, the company knows the inventory on hand and the related cost of goods sold at any point in time.