perpetual inventory method

Definition

A system of real-time inventory control that provides an estimate of inventory levels on a continuous basis. For example, retailers utilize barcode technology to track instant changes in inventory based on transactions and, therefore are able to maintain an accurate accounting of cost of goods sold, stock on hand, and replenishment needs. Typically, a physical inventory is taken regular intervals in order to verify inventory for purposes of certifying financial statements.
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perpetual inventory perpetual option (XPO)