Perpetual inventory system
Give a brief introduction of the term ‘Perpetual inventory system’?
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It is a system under that continuous stocking occurs. This system is implemented through the large manufacturing units. It aspires at maintaining stores ledgers and bin cards to know the quantity and value of the stock at any point of time which makes sure that the physical balance and the book balance tallies. Through methodically maintaining perpetual inventory system discrepancies can be simply located and can be adjusted in time. It also facilitate in locating slow and non-moving items and to take action for the similar.
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Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Lab
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