Which term refers to inventory control that is updated automatically with each sale or purchase, typically using a computer system?

Which term refers to inventory control that is updated automatically with each sale or purchase, typically using a computer system?

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

Answer: (D)

Real-time inventory tracking updates stock balances automatically with each sale or purchase through computer systems. This approach, perpetual inventory control, keeps a continuous record of what’s on hand by recording every transaction as it happens. With each sales or purchase entry, quantities are adjusted, so you always see current stock levels, know what’s on order, and can set timely reorder points. This contrasts with counting stock only at intervals, which leaves gaps between counts and can hide discrepancies or stockouts. Other terms like physical inventory control refer to actual counts rather than automatic updates, and cash discounts pertain to payment terms, not inventory updating. Perpetual inventory control best fits the idea of ongoing, automatic updates.

Real-time inventory tracking updates stock balances automatically with each sale or purchase through computer systems. This approach, perpetual inventory control, keeps a continuous record of what’s on hand by recording every transaction as it happens. With each sales or purchase entry, quantities are adjusted, so you always see current stock levels, know what’s on order, and can set timely reorder points. This contrasts with counting stock only at intervals, which leaves gaps between counts and can hide discrepancies or stockouts. Other terms like physical inventory control refer to actual counts rather than automatic updates, and cash discounts pertain to payment terms, not inventory updating. Perpetual inventory control best fits the idea of ongoing, automatic updates.