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

Question

Quizplus · Accepted Answer

The perpetual inventory method does not require a stocktake to estimate cost of sales. Cost of sales is calculated for each transaction through the continuous record of inventory movements.

Which Statement Concerning the Perpetual Inventory Method Is Incorrect