The perpetual inventory method of tracking inventory is considered superior to the periodic method because the perpetual method:
a.makes calculations easier and less technology can be deployed.
b.tells what inventory a company should have at any point in time.
c.saves a company from ever having to count the goods in inventory.
d.is more consistent with how companies calculated inventory in the past.
In order to calculate shrinkage:
a.both periodic and perpetual inventory systems are needed.
b.a periodic inventory system is more effective.
c.a perpetual inventory system requires an occasional count of actual inventory.
d.it does not matter which system one uses.
