Practice Quiz

Veterinary Practice Manager

Category - CVPM

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Which of the following choices is a key feature of a perpetual inventory system?
  1. Quantities are updated by manual inventory counts
  2. When an item is received, it is immediately added to inventory and automatically subtracted when it is sold
  3. When an item is ordered, it is automatically added into inventory counts
  4. Quantities are updated by annual inventory counts and do not have to adjusted throughout the year
Explanation
Answer: B-A key feature of a perpetual inventory system is that when an item is received, it is immediately added to inventory and automatically subtracted when it is sold. This allows for a fairly accurate idea of inventory quantity and value at any given time
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