Question

Physical inventory counts:

a.Are not necessary under the perpetual system.

b.Are necessary to determine differences between actual inventory available and the Inventory account balance.

c.Must be taken at least once a month.

d.Require the use of hand-held portable computers.

e.Are not necessary under the cost-to benefit constraint.

Answer 1

Physical inventory counts:

b.Are necessary to determine differences between actual inventory available and the Inventory account balance.

Which is necessary to measure and adjust for inventory shrinkage.