Which characteristic is associated with the Physical Inventory Method?

The Physical Inventory Method is characterized by the approach of manually counting and valuing inventory at specific points in time, rather than continuously tracking inventory levels. This approach results in the stock account being inactive throughout the accounting period, as inventory records are not updated with each transaction. Instead, the total value of stock is determined at the end of the period through a stocktake, which provides a snapshot of inventory on hand. This method is commonly used by businesses that may have simpler inventory needs or those that do not require constant tracking of inventory levels.

In contrast, the other options imply continuous tracking or automated systems that are not characteristic of the Physical Inventory Method. For instance, real-time tracking, automatic calculation of stock levels, and daily sales recording are features associated with more advanced inventory management systems and methodologies, such as the Perpetual Inventory Method or computerized inventory systems, rather than the manual counting method inherent to the Physical Inventory Method.