Which inventory costing system continuously records inventory quantity and monetary value changes as transactions occur?
APeriodic Inventory System
BPerpetual Inventory System
CWeighted Average System
DFIFO Costing System
Explanation
* The Perpetual Inventory System updates inventory balances and Cost of Goods Sold continuously after every purchase or sale.
* It relies on barcode scanning and automated point-of-sale systems.
* Contrast with the Periodic System, which relies on physical counts performed at specified reporting intervals.
Exam Relevance
- Topic: Financial Accounting
- Subtopic: Inventory Systems

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