Perpetual inventory systems:
A)Record changes in inventory categories only at the end of each period
B)Record changes in inventory categories only when sales are made
C)Record changes in inventory categories whenever material is moved from one category to another
D)Does not address raw materials

Question

Quizplus · Accepted Answer

Perpetual inventory systems record changes in inventory categories whenever material is moved from one category to another. This system allows for real-time tracking of inventory levels and category placements, making it easier to identify inventory issues and make quick adjustments. Options A and B are incorrect as perpetual inventory systems record changes continuously, not just at the end of each period or when sales are made. Option D is incorrect as perpetual inventory systems can track all types of inventory, including raw materials.

Perpetual Inventory Systems