Which system do companies use to keep up with inventory over a period of time?

Which system do companies use to keep up with inventory over a period of time?

• A. Perpetual inventory control
• B. Physical Inventory Control
• C. Unit Control
• D. Cash Discounts

Answer: (A)

Tracking inventory continuously by recording every transaction as it happens. A perpetual inventory system updates stock levels in real time after each purchase or sale, giving a live view of what’s on hand over time. This ongoing visibility helps with timely reordering, accurate cost of goods sold, and quick detection of discrepancies. Physical inventory control relies on periodic counts at specific moments rather than a running record. Unit control isn’t a standard method for tracking inventory over time, and cash discounts relate to payment terms rather than inventory tracking.

Tracking inventory continuously by recording every transaction as it happens. A perpetual inventory system updates stock levels in real time after each purchase or sale, giving a live view of what’s on hand over time. This ongoing visibility helps with timely reordering, accurate cost of goods sold, and quick detection of discrepancies. Physical inventory control relies on periodic counts at specific moments rather than a running record. Unit control isn’t a standard method for tracking inventory over time, and cash discounts relate to payment terms rather than inventory tracking.