Which of the following would not tend to make a manufacturer choose a perpetual inventory system?
A)Management wants information about quantities of specific products.
B)A low volume of sales transactions and a computerized accounting system.
C)A high volume of sales transactions and a manual accounting system.
D)Items in inventory with high per unit costs.

Question

Quizplus · Accepted Answer

A perpetual inventory system requires frequent updating of inventory levels, which is difficult to do manually for a high volume of sales transactions. Therefore, a manufacturer with a high volume of sales transactions and a manual accounting system would not choose a perpetual inventory system. Choices A, B, and D suggest situations that may make a manufacturer more likely to choose a perpetual inventory system.

Which of the Following Would Not Tend to Make a Manufacturer