Which of the following is NOT an advantage of the perpetual over the periodic inventory method?
A) A continuous record of inventory on hand is furnished.
B) Inventory theft may be detected.
C) Recording is simplified.
D) The perpetual inventory system provides a continuous record of cost of goods sold.

Question

Quizplus · Accepted Answer

This is because the periodic inventory system requires only occasional counting of inventory and then the matching of the cost of the items sold during the period to the sales transactions. Therefore, recording is considered to be simpler under the periodic inventory method than the perpetual inventory method. The other options (A, B, D) are advantages of the perpetual inventory method over the periodic inventory method.

Which of the Following Is NOT an Advantage of the Perpetual