Indicate whether each of the statements that follow is more applicable to a perpetual inventory system, periodic inventory system, or both.
1. Inventory figure is not accurate until the balance sheet date.
2. Requires a physical count of inventory at end of period.
3. No detailed records of the inventory are maintained during the accounting period.
4. Continuous records are kept of the quantity of inventory on hand.
5. Cost of Goods Sold is calculated only at the end of the accounting period.
6. Effective system for managing inventory and thus avoiding running out of stock.
7. Is more costly to maintain but may lead to increased sales.