In order to calculate shrinkage:
A)both periodic and perpetual inventory systems are needed.
B)a periodic inventory system is more 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

Calculating shrinkage using a perpetual inventory system requires a physical count to compare to the ledger balance which has been perpetually updated for purchases,sales,and returns.Shrinkage cannot be calculated using a periodic inventory system.

In Order to Calculate Shrinkage