The Perpetual Method of Accounting for Inventory

Multiple Choice

The perpetual method of accounting for inventory

A) Requires that a physical count of inventory be taken before the cost of goods sold can be determined with any reasonable degree of accuracy
B) Is likely to be less expensive to maintain than a periodic inventory method
C) Is not as helpful as a periodic method in providing management with timely reports about inventory quantities and costs
D) Allows management to better estimate inventory losses from pilferage than does a periodic inventory method