Perpetual inventory system involves .a.bill of material and material requisition.b.bincard and stores ledger.c.purchase requisition and purchase order.d.inward and outward invoices.
Question
Perpetual inventory system involves .a.bill of material and material requisition.b.bincard and stores ledger.c.purchase requisition and purchase order.d.inward and outward invoices.
Solution
The perpetual inventory system involves option b. bincard and stores ledger.
Here's why:
A perpetual inventory system is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
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Bincard: It is a record card which records the quantity of materials received, issued and balance left in store. It is maintained by the storekeeper.
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Stores Ledger: It is a ledger that keeps a record of the quantity and value of the stock of materials in the store.
These two components are crucial in a perpetual inventory system as they help in maintaining real-time records of the inventory in the store.
The other options mentioned like bill of material, material requisition, purchase requisition, purchase order, inward and outward invoices are also part of inventory management but they are not specific to the perpetual inventory system.
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