What type of inventory accounting system accounts for inventory in real time?

The perpetual inventory accounting system is designed to track inventory levels in real-time, providing immediate updates on stock on hand as transactions occur. This system utilizes technology, such as point-of-sale (POS) systems, that records each inventory change, whether it is a sale, purchase, or return of goods. As a result, businesses can maintain an accurate and up-to-date record of their inventory without having to wait for a specific period to conduct a physical count.

This approach allows for better inventory management and control, enabling merchants to make informed decisions regarding restocking and product sales based on current inventory levels. It also helps identify trends and patterns in inventory usage, ultimately contributing to optimized operations and improved financial tracking.

The other types of inventory systems mentioned, such as periodic inventory, calculate inventory levels at specific intervals rather than continuously, which can lead to discrepancies and delays in reporting. Manual and automated inventory methods refer to the processes used to track inventory but do not inherently provide the real-time capabilities that a perpetual inventory system does.