Final answer:
The advantages and disadvantages of the perpetual inventory system include real-time tracking and higher costs for implementation and maintenance.
Step-by-step explanation:
The question asks about the advantages and disadvantages of the perpetual inventory system. The correct answer is a) Real-time tracking, higher cost. An advantage of the perpetual inventory system is the ability for real-time tracking of inventory levels. This ensures that a company knows exactly what is in stock at any time, promoting better inventory management and helping to meet customer demand without overstocking. However, a notable disadvantage is the higher cost associated with implementing and maintaining such a system. It typically requires significant investment in technologies like RFID (Radio-Frequency Identification) and an enterprise resource planning (ERP) system, as well as costs for training employees to effectively use the system.