Explain each of the following statements:

a. A periodic inventory system provides no information to control shrinkages.

b. A perpetual inventory system requires elements of a periodic inventory system to be effective.

c. The choice between a periodic and a perpetual inventory system depends in pan on the quantity and the value of individual inventory items.

d. The choice between a periodic and a perpetual inventory system depends in part on the cost of being "out of stock" of an inventory item.

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