Question

True or False: One of the disadvantages of the perpetual inventory system is the company's decreased ability to keep better records with respect to the quantity and cost of its inventory on hand at a given point in time.

Answer 1

Answer:

False

Explanation:

A perpetual inventory system allows a company to keep better records regarding the costs and volume of its inventory. It also helps to prevent stock-outs because the inventory is continuously checked, and helps to better understand consumer preferences. Some large companies have developed such good perpetual inventory systems that they practically do not even count their inventory on a periodic basis anymore, e.g. Amazon.

Answer 2

Answer:

False

Explanation: