perpetual inventory method

perpetual inventory method definition - business

perpetual inventory method

A system of accounting for the value and quantity of inventory by using computers to continuously monitor sales and returns. An occasional physical count is required to confirm the values provided by a perpetual inventory system, which is likely to miss losses from theft. Compare periodic inventory method.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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