Which of the following inventory systems continuously updates inventory records for each purchase and sale of inventory?

• A. Periodic inventory system
• B. Specific identification method
• C. Perpetual inventory system
• D. Just-in-time inventory system

Answer: (C)

Verified step by step guidance

1. Understand the concept of inventory systems: Inventory systems are methods used by businesses to track and manage their inventory levels. The two primary systems are the periodic inventory system and the perpetual inventory system.
2. Learn about the periodic inventory system: This system updates inventory records at specific intervals, such as at the end of an accounting period. It does not continuously track inventory changes during the period.
3. Understand the perpetual inventory system: This system continuously updates inventory records for each purchase and sale of inventory. It provides real-time tracking of inventory levels and is often supported by technology like barcode scanners and inventory management software.
4. Compare the perpetual inventory system with other methods: The specific identification method is a way to track individual items of inventory, but it is not an inventory system. The just-in-time inventory system is a strategy to minimize inventory levels, not a system for tracking inventory.
5. Conclude that the perpetual inventory system is the correct answer: Based on the definitions and characteristics, the perpetual inventory system is the one that continuously updates inventory records for each purchase and sale of inventory.