perpetual inventory system Definition | Business Dictionaries from
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Business Glossary


Business Definition for: perpetual inventory system
perpetual inventory system

one keeping continual track of additions or deletions in materials, work-in-process, and cost of goods sold on a day-to-day basis. Physical inventory counts are usually taken at least once a year in order to check on the validity of the book records. Cost of goods sold therefore is kept on a day-to-day basis rather than being determined periodically.

See also periodic inventory system
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