Which inventory cost accounting system maintains continuous real-time tracking of inventory balances and cost of goods sold after every single transaction?
APeriodic Inventory System
BPerpetual Inventory System
CPhysical Inventory System
DBatch Processing System
Explanation
• A Perpetual Inventory System updates inventory balances and Cost of Goods Sold continuously with every sale or purchase transaction.
• Periodic Systems update inventory records only at fixed intervals following physical inventory counts.
• Modern point-of-sale barcode scanners and ERP software rely primarily on perpetual inventory tracking.
Exam Relevance
- Topic: Financial Accounting
- Subtopic: Inventory Systems

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