what is the perpetual inventory method
When the perpetual inventory system is used, there is a continuous or perpetual record of inventory recorded in the inventory account. When a company purchases product, it is immediately recorded as inventory.erpetual Inventory and the Inventory Count. Though an inventory count should be taken once a year to measure and match inventory records, the perpetual inventory system does not depend on this count to determine cost of goods sold, but is used to verify inventory records.