What is a purpose of a perpetual inventory system?

A perpetual inventory system is designed to continuously update inventory availability. This is achieved through real-time tracking of inventory transactions, including purchases, sales, and returns. By keeping an ongoing and precise account of stock levels, businesses can maintain accurate records, enhance inventory management, and facilitate timely decision-making. This system allows retailers to have an up-to-date understanding of their stock, which is crucial for effective replenishment, reducing stockouts, and improving customer satisfaction.

The other options do not capture the primary function of a perpetual inventory system. Limiting inventory records could actually hinder accurate tracking and management. Maintaining outdated stock records contradicts the aim of a perpetual system, as it seeks to provide the most current data. Tracking only the best-selling items doesn't reflect the comprehensive nature of a perpetual inventory system, which encompasses all items in inventory, not just a select few.