Final answer:
The statement is True. Despite intermittent sales and purchases and often unknown item costs at the point of sale, companies can utilize the perpetual inventory method to continuously update inventory accounting and track costs using cost flow assumptions.
Step-by-step explanation:
True or False: When sales and purchases occur intermittently, the cost of the items purchased is frequently unknown at the time a sale occurs. Even so, companies can still use the perpetual inventory method. True. Companies can indeed use the perpetual inventory system even when sales and purchases are intermittent and the cost of items is unknown at the time of sale. The perpetual inventory method continuously updates the inventory account to reflect purchases and sales, typically through a computerized system. This method allows for detailed inventory records and real-time inventory tracking. When a purchase is made, the cost is recorded, and the inventory is updated. When a sale happens, the inventory system uses cost flow assumptions (like FIFO, LIFO, or weighted average) to estimate the cost of goods sold, adjusted accordingly in the inventory records.