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Under a Perpetual Inventory System,is It Necessary to Take a Physical

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Essay

Under a perpetual inventory system,is it necessary to take a physical inventory at the end of the period? Why or why not?


Definitions:

Net Present Value

The calculation of the present value of an investment's expected cash inflows and outflows, used to assess the profitability of an investment or project.

Project Life

The duration from the initiation to the completion of a project, encompassing all stages of its development and execution.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Payback Period

This is the duration required to recoup the funds expended in an investment.

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