When Using A Perpetual Inventory System The Cost Of Goods Sold Is Recorded?
When using a perpetual inventory system, the cost of goods sold is recorded continuously and updated with each sale. This means that the cost of the specific items sold is subtracted from the inventory balance and included in the cost of goods sold. This allows for more accurate tracking of inventory levels and cost of goods sold throughout the year, as well as providing real-time information for decision making.