Answer : Vast majority of firms use the perpetual method
the reasons of which are as follows:
- Perpetual method is a proactive way to prevent stock from
running out so as to maintain the reorder level.
- Perpetual method allows business owners to centralise the
inventory management system.
- Provides accuracy in inventory management.
- Give information about discounts, purchases, purchase return
etc.
- Provides useful and reliable information to users.
- It reduces physical inventory count.