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Advantages of perpetual inventory system

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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Data?1494421730 answered

Dear Friend > ADVANTAGES OF PERPETUAL INVENTORY SYSTEM Advantages -- Greater control over stock -- Slow-moving and fast-moving lines of inventory can be identified. -- Reordering of inventory is more efficient. -- Interim profit reports can be prepared without doing a stock take. -- The level of stock losses or gains can be measured. Some other advantage

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**ADVANTAGES OF PERPETUAL INVENTORY SYSTEM** This system avoids the disruptions to production or trading caused by the periodic stock taking. • This system facilitates production planning and inventory control. • Perpetual inventory system is efficiently maintained without continuous stock taking. • The perpetual inventory system avoids the necessary of stock taking by actual count at the end of financial period. • Stock can be taken for the purpose of preparation of profit and loss account and balance sheet. • It helps in having a detailed and more reliable check on the stocks. • The stock records are more reliable and stock discrepancies are investigates and appropriate actions are taken immediately. Thanks

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