A perpetual inventory system is able to directly measure and monitor inventory shrinkage.

Question

Quizplus · Accepted Answer

A perpetual inventory system cannot directly measure and monitor inventory shrinkage. It can only track the flow of inventory and identify any discrepancies between the physical inventory and the records. Inventory shrinkage must be calculated separately, typically through periodic physical inventory counts and comparisons to the perpetual inventory records.

A Perpetual Inventory System Is Able to Directly Measure and Monitor