In a perpetual inventory system, an end of period inventory count and valuation is required to compute cost of sales.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, cost of sales is calculated continuously throughout the period based on the inventory levels and purchases recorded in real-time. Therefore, there is no need for an end of period inventory count and valuation to compute cost of sales.

In a Perpetual Inventory System, an End of Period Inventory