Question

A perpetual inventory system ​(check all that ​apply)​: A. Provides better control over inventory B. Does not need a physical inventory count since inventory records are updated in a​ business's computerized records C. Is constantly updating merchandise inventory after each purchase and sale of inventory D. All of the above

Answer 1

D) All of the above

Step-by-step explanation:

A good perpetual inventory system doesn't require a physical inventory count, not because it is not useful, but because it is not worth it. The benefits that can be obtained through a physical count are much less than the costs of doing so, e.g. big corporations like Amazon or Apple probably will never carry out a physical inventory count.

The reason why a physical count is not needed is because a good perpetual inventory system provides a very high control level over the inventory and is continuously updated.

Even smaller firms cannot afford to carry out a physical inventory count, imagine a supermarket having to close for a full week in order to count the products. Besides the actual cost of counting goods, the lost revenue due to shutting down operations.

Answer 2

Option A and option C are correct options here.

Step-by-step explanation:

The inventory system keeps the merchandise inventory updated when the company purchases or makes sales of inventory. Furthermore it also helps in better management of inventory within and outside of the organization. However it does requires physical inventory count because the amount of inventory received and transferred to manufacturing site helps in recording inventory flow within the organization.