When a Company Is Evaluating Whether or Not to Use

Multiple Choice

When a company is evaluating whether or not to use a perpetual vs.a periodic inventory system the following statement is most accurate:

A) A perpetual inventory system provides far superior information and should be used at any cost.
B) A periodic system is inferior and should never be used if possible.
C) The cost of the system used should be measured against the benefits it provides.
D) Both systems are equally good.