What is a disadvantage of the Perpetual Inventory Method?

The choice highlighting the need for staff training and the time required for accurate entry is valid as a disadvantage of the Perpetual Inventory Method. This method continuously updates inventory records with every purchase and sale, which provides real-time inventory levels. However, to achieve the benefits of this system, employees must be adequately trained to ensure that every transaction is recorded correctly and promptly. Mistakes or delays in data entry can lead to inaccurate inventory records, which can be particularly problematic for businesses that rely on precise inventory levels for their operations and decision-making.

Moreover, as the method requires constant updates, it also demands a significant commitment of time and resources to maintain accuracy. As a result, organizations may face operational challenges, especially if staff are not well-versed in the system or if there is high employee turnover. This contrasts with other inventory methods that might be simpler and require less detailed tracking, making the Perpetual Inventory Method more demanding in terms of comprehensive training and efficiency in execution.