Question

A perpetual inventory system:

A.does not maintain control over inventory as strongly as a periodic inventory system does
B.keeps inventory continuously updated
C.updates inventory at the end of the month, based on a physical count
D. is used by both merchandising companies and service companies

Answer 1

A perpetual inventory system is a system that keeps inventory continuously updated in real-time. It is used by both merchandising companies and service companies to monitor and manage their inventory levels.

Step-by-step explanation:

A perpetual inventory system is a system that keeps inventory continuously updated.

Unlike a periodic inventory system, which updates inventory at the end of the month based on a physical count, a perpetual inventory system maintains control over inventory in real-time.

It is used by both merchandising companies and service companies to monitor and manage their inventory levels.