Final answer:
The statement is true; businesses may use either a physical count or a continuous record to determine inventory levels, both of which have their advantages in managing supply chains.
Step-by-step explanation:
The statement that businesses may use two methods to determine the number of goods in inventory—taking a physical count of the goods and keeping a continuous record for each inventory item—is true. A physical count of inventory involves actually counting each item in stock, which provides an accurate and exact number of goods on hand. This process is typically done periodically, such as at the end of a fiscal year. On the other hand, maintaining a continuous record, also known as the perpetual inventory system, involves tracking each inventory item immediately as it is bought, sold, or moved, providing a real-time view of inventory levels. This method reduces the uncertainty that can arise from stock movements and can be crucial for businesses in managing their supply chains effectively.