Which of the following statements regarding periodic and perpetual inventory sys

Question

Which of the following statements regarding periodic and perpetual inventory systems is correct?

Periodic inventory systems require a greater investment in technology.

Perpetual inventory systems are inferior for determining optimal times to reorder inventory.

Periodic inventory systems allow sales personnel to provide more immediate information regarding availability of inventory.

Perpetual inventory systems may assist in determining inventory lost due to shrinkage.

Periodic inventory systems require a greater investment in technology.

Perpetual inventory systems are inferior for determining optimal times to reorder inventory.

Periodic inventory systems allow sales personnel to provide more immediate information regarding availability of inventory.

Perpetual inventory systems may assist in determining inventory lost due to shrinkage.

Explanation / Answer

Answer-Perpetual inventory systems may assist in determining inventory lost due to shrinkage

perpetual inventory sytstem provide more upto date information than periodic as inventory is updated after each transaction , whereas in periodic inventory is counted at year end only ,therefore periodic requires more investment in technology

Answer-Perpetual inventory systems may assist in determining inventory lost due to shrinkage

perpetual inventory sytstem provide more upto date information than periodic as inventory is updated after each transaction , whereas in periodic inventory is counted at year end only ,therefore periodic requires more investment in technology

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