Answer:
Businesses with high sales volume and multiple retail outlets (like grocery stores or pharmacies) need perpetual inventory systems. The technological aspect of the perpetual inventory system has many advantages such as the ability to more easily identify inventory-related errors.
In perpetual inventory systems, a sale of a stock item increases cost of goods sold (COGS) It includes material cost, direct and also is updated in accounting records to ensure that the number of goods in a store or in storage is accurately reflected in the inventory account.
