A Perpetual Inventory System Is Preferable to a Periodic System

Multiple Choice

A perpetual inventory system is preferable to a periodic system if adequately controlled and maintained because of which of the following?

A) It requires that a full inventory count be taken at year-end by all warehouse employees.
B) It allows management to calculate cost of goods sold at year-end.
C) It provides information to management where book inventory is continuously in agreement with inventory on hand within specified time periods.
D) It better controls the receipt of goods.