Which inventory system is computerized and measures inventory in real time?

• A. Visual Method
• B. Periodic Method
• C. Perpetual Method
• D. Setting Order Points

Answer: (C)

Real-time visibility with automatic updates comes from a perpetual inventory system. This approach keeps a continuous, up-to-date record of inventory on hand, and when computerized, every transaction—purchases and sales—triggers an instant update to stock levels and the cost of goods sold. Because the system records each event as it happens, you always know exactly how many units are on hand, where they are, and how much they cost at that moment. This enables quick replenishment decisions and accurate financial reporting.

The other options don’t provide that combination. The visual method relies on manual counting without automatic, live updates. The periodic method updates records only at specific intervals after physical counts, so on-hand levels aren’t real-time. Setting order points describes when to reorder, not how inventory is tracked in real time.