Which inventory system maintains a continuous record of all purchases and issues to show current stock levels at all times?

Which inventory system maintains a continuous record of all purchases and issues to show current stock levels at all times?

• A. Physical
• B. Periodic
• C. Continual
• D. Perpetual

Answer: (D)

Real-time inventory visibility is the key idea. A perpetual inventory system records every purchase and every issue as it happens, updating the on-hand balance continuously so you always know exactly how much stock you have. This immediate updating means current stock levels are available at all times, and cost of goods sold can be tracked with each transaction. This stands in contrast to periodic systems, which only refresh stock numbers at set intervals after a physical count, leaving gaps in between counts. A physical inventory is simply the act of counting stock to verify records, not the ongoing method of tracking. So, the perpetual approach provides continuous, up-to-date stock information.

Real-time inventory visibility is the key idea. A perpetual inventory system records every purchase and every issue as it happens, updating the on-hand balance continuously so you always know exactly how much stock you have. This immediate updating means current stock levels are available at all times, and cost of goods sold can be tracked with each transaction. This stands in contrast to periodic systems, which only refresh stock numbers at set intervals after a physical count, leaving gaps in between counts. A physical inventory is simply the act of counting stock to verify records, not the ongoing method of tracking. So, the perpetual approach provides continuous, up-to-date stock information.