The perpetual inventory method of tracking inventory

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Reference no: EM131202394

1. The perpetual inventory method of tracking inventory is considered superior to the periodic method because the perpetual method:

a. makes calculations easier and less technology can be deployed.

b. tells what inventory a company should have at any point in time.

c. saves a company from ever having to count the goods in inventory.

d. is more consistent with how companies calculated inventory in the past.

2. In order to calculate shrinkage:

a. both periodic and perpetual inventory systems are needed.

b. a periodic inventory system is more effective.

c. a perpetual inventory system requires an occasional count of actual inventory.

d. it does not matter which system one uses.

Reference no: EM131202394

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