**Question:**Which inventory system would allow a business to determine inventory shrinkage (breakage, theft, etc.)?**Options:**- LIFO- Perpetual- FIFO- Periodic**Explanation:**The question asks which inventory management system helps businesses track inventory shrinkage due to breakage, theft, or other factors. The available options are different types of inventory management systems:- **LIFO (Last In First Out):** An accounting method for managing inventory and financial matters, where the most recently produced items are recorded as sold first.- **Perpetual:** A real-time inventory management system that updates inventory counts continuously as transactions occur.- **FIFO (First In First Out):** An inventory method where the items purchased first are sold first.- **Periodic:** An inventory system where updates are made to the inventory count at specific intervals, such as monthly or annually.The system that best allows for real-time tracking and detection of discrepancies, such as shrinkage, is typically the **Perpetual** inventory system.

Introduction:- Under Perpetual inventory system tracking of all sales and inventory immediately.…

Answered: Which inventory system would allow a…

Which inventory system would allow a business to determine inventory shrinkage (breakage, theft, etc.)? OLIFO Perpetual O FIFO Periodic ●

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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