LO 6.2 Which of the following is a disadvantage of the perpetual inventory system?Choose one answer from the options below.A. Inventory information is in real-time.B. Inventory is automatically updated.C. It allows managers to make current decisions about purchases, stock, and sales.D. It is cost-prohibitive.BackNext

The perpetual inventory system is often used by smaller businesses that have easy-to-manage inventory and may not have a lot of money or the opportunity to implement computerized systems into their workflow.Group of answer choicesFalseNo answer text provided.No answer text provided.True

Select all that applyWhich of the statements below explain why perpetual inventory systems are becoming more popular?Multiple select question.It is more cost effective as it decreases the cost of goods sold reported on the income statement.Managers have immediate access to detailed information on sales and inventory levels.Technological advances have made it easier to use.Managers are incurring less pressure to use it because of purchasing trends.

explain the difference between a 'periodic inventory system' and a 'perpetual inventory system' and why a perpetual system provides more useful information than a periodic system. (3 marks)

Perpetual inventory system involves .a.bill of material and material requisition.b.bincard and stores ledger.c.purchase requisition and purchase order.d.inward and outward invoices.

The primary difference between a periodic and perpetual inventory system is that a periodic system: Group of answer choices keeps a record showing the inventory on hand at all times. provides better control over inventories. records the cost of the sale on the date the sale is made. determines the inventory on hand only at the end of the accounting period.