If management wanted to keep track of inventory that was stolen or damaged separately from their cost of sales, which inventory system should they use?
A)Periodic system
B)Perpetual system
C)Just-in-time system
D)No inventory system separates stolen goods from the cost of sales.

Question

Quizplus · Accepted Answer

A perpetual inventory system keeps a continuous record of inventory levels and transactions, making it easier to track stolen or damaged inventory separately from the cost of sales. In contrast, a periodic inventory system only takes periodic physical counts and calculates cost of goods sold using a formula, making it more difficult to separate out stolen or damaged inventory. The just-in-time system and the lack of an inventory system do not address the need to separately track stolen or damaged inventory.

If Management Wanted to Keep Track of Inventory That Was