Asked by
Briceida Quintana
on Oct 16, 2024
Verified
A perpetual inventory system is able to directly measure and monitor inventory shrinkage and there is no need for a physical count of inventory.
Perpetual Inventory System
An inventory accounting system that records purchases and sales of goods instantly through computer systems, providing a continuous record of inventory levels.
Inventory Shrinkage
The loss of products between procurement and sale, often due to theft, damage, or administrative errors, affecting inventory levels.
- Comprehend the core concepts of the perpetual inventory system.
- Acknowledge the necessity of precise management and presentation of inventory in financial documents.
Verified Answer
SG
Learning Objectives
- Comprehend the core concepts of the perpetual inventory system.
- Acknowledge the necessity of precise management and presentation of inventory in financial documents.
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