Which inventory method uses a computer system to track inventory continuously over time?

Which inventory method uses a computer system to track inventory continuously over time?

• A. Physical Inventory Control
• B. Unit Control
• C. Perpetual inventory control
• D. Cash Discounts

Answer: (C)

Continuous, real-time tracking of inventory using a computer system is the idea behind perpetual inventory control. This approach records every transaction—sales, purchases, returns—immediately, updating on-hand quantities and values as they happen. That gives up-to-the-minute stock levels and makes it easier to spot shortages, overages, or discrepancies, while also supporting accurate financial reporting. In contrast, physical or periodic counting relies on occasional checks and can leave records out of date until a count is done. The other terms don’t describe this ongoing, system-driven visibility into inventory.

Continuous, real-time tracking of inventory using a computer system is the idea behind perpetual inventory control. This approach records every transaction—sales, purchases, returns—immediately, updating on-hand quantities and values as they happen. That gives up-to-the-minute stock levels and makes it easier to spot shortages, overages, or discrepancies, while also supporting accurate financial reporting. In contrast, physical or periodic counting relies on occasional checks and can leave records out of date until a count is done. The other terms don’t describe this ongoing, system-driven visibility into inventory.