1. The perpetual inventory method of tracking inventory is considered superior to the periodic method because the perpetual method:
a. makes calculations easier and less technology can be deployed.
b. tells what inventory a company should have at any point in time.
c. saves a company from ever having to count the goods in inventory.
d. is more consistent with how companies calculated inventory in the past.
2. In order to calculate shrinkage:
a. both periodic and perpetual inventory systems are needed.
b. a periodic inventory system is more effective.
c. a perpetual inventory system requires an occasional count of actual inventory.
d. it does not matter which system one uses.