Which of the following statements concerning the perpetual inventory method is incorrect?
A) A stocktake is required to estimate cost of sales.
B) Cost of sales is calculated for each transaction.
C) A continuous record is kept of all movements in inventory.
D) With the increased use of computers it has become the most common system.

Question

Quizplus · Accepted Answer

The perpetual inventory method does not require a stocktake to estimate cost of sales as cost of sales is calculated for each transaction.

Which of the Following Statements Concerning the Perpetual Inventory Method