ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The partial inventory control system is a combination of systems. In this system, a perpetual inventory is maintained for only those items that account for a large share of the company’s sales.
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False
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True
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The perpetual system may be better suited for businesses that have larger, more complex levels of inventory and those with higher sales volumes. For instance, grocery stores or pharmacies tend to use perpetual inventory systems.
Detailed explanation-2: -Under a perpetual inventory system, it continually updates only the inventory and cost of goods sold accounts. Purchase discounts are lodged under the inventory account. Option C is correct.
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