Question

The main difference between the perpetual and periodic inventory systems is: Select one: o a. Organisations with high value inventory items tend to use the periodic system because it is more precise than the perpetual system b. Stock losses are identifiable under the periodic system but not the perpetual system c. Continuous records on the flow of inventory units are maintained under the perpetual system but not the periodic system O d. The perpetual system is generally cheaper to use than the periodic system

Answer 1

OPTION C: Continuous records on the flow of inventory units are maintained under the perpetual system but not the periodic system

EXPLANATION:

perpetual inventory system keeps records of cost of goods sold and ending inventory each time there is movement in inventory I.e. each time when inventories are purchased or sold.

under periodic inventory system, there is occasional physical count of the inventory rather than continuous.