Companies with Perpetual Inventories Need Not Take Physical Inventory Counts

question 112

True/False

Companies with perpetual inventories need not take physical inventory counts because inventory amounts are perpetually available.

---

Definitions:

Construct Validation

The strategy of establishing the validity of a measure by comparing it with a wide range of other measures.

Internal Validation

The process of seeking or achieving a sense of validation or approval from oneself rather than from external sources.

Experimental Method

A scientific approach used to test hypotheses under controlled conditions.

Causal Variable

A causal variable is a factor that brings about change in another variable or set of variables, establishing a cause-and-effect relationship.