In order to calculate shrinkage:
A)both periodic and perpetual inventory systems are needed.
B)a periodic inventory system is most effective.
C)a perpetual inventory system requires an occasional count of actual inventory.
D)it does not matter which system one uses.

Question

Quizplus · Accepted Answer

Shrinkage is defined as the difference between the recorded inventory and the actual inventory on hand. A perpetual inventory system continuously updates inventory records, but it still requires an occasional physical count to ensure accuracy. Therefore, a perpetual inventory system is the best choice for calculating shrinkage because it provides constant monitoring and updating of inventory records, while also allowing for periodic physical counts to double-check accuracy.

In Order to Calculate Shrinkage