One advantage to using a perpetual inventory system is that the company never has to physically count the inventory. (True/False)

False, it is not an advantage of the perpetual inventory system that you never have to physically count the inventory.

While a perpetual inventory system will reduce the need for counts, perpetual inventory estimates the cost of goods sold at each sale, but cannot know whether inventory has been stolen, broken, or been thrown out. To find this out, companies still need to do periodic inventory counts to control their inventory with the perpetual inventory system.