Which of the Following Statements Is True

Which of the following statements is true?

A) A perpetual inventory system is cheaper to maintain than a periodic inventory system.
B) If a perpetual inventory system is adopted, stock-takes will need to be undertaken more frequently than if a periodic inventory system is adopted.
C) Under a perpetual inventory system, no record is maintained of items issued from inventory.
D) A periodic inventory system is preferable if a hotel is experiencing an inventory pilferage problem.
E) A periodic inventory system does not maintain an up-to-date record of the balance held in inventory.

Correct Answer:

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