Estimating the value of inventory via a stock system

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Question

Your friends who were working in accounts department in their companies are arguing on certain issues regarding inventories. One group is arguing about estimating the value of inventory via a stock system will not give sufficient and accurate inventory values and a full physical stocktake can give full accuracy. Another group of friends, are arguing that a good perpetual inventory system is sufficient to value the inventory accurately, thus a costly and time-consuming stock take is no longer necessary. As an accounts senior, you are required to comment on the statement.

Reference no: EM132406826

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