Perpetual inventory system
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Perpetual inventory system is an inventory system of an organization that keeps a continuous (perpetual) record of each type of inventory by recording units on hand, units sold, cost of goods sold, and the current balance after each sale or purchase.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Perpetual inventory system. An inventory system of an organization that keeps a continuous (perpetual) record of each type of inventory by recording units on hand, units sold, cost of goods sold, and the current balance after each sale or purchase.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
