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Financial Accounting

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Selection of Inventory Systems

FINACT-TXNC4F

You and one of your friends own a small souvenir shop in New York. Everything is handled by the two of you without the help of any computers. You just learned about the perpetual inventory system and believe it is the most appropriate way to manage inventory.

Is this statement correct?

A

Yes, the perpetual inventory system is appropriate in this context

B

No, the perpetual inventory system is NOT appropriate in this context

C

No, since this is a small business, NO inventory management is necessary

D

None of the above