The Major Issue in inventory accounting is:

A. determining whether to take inventory using cycle counts as opposed to counting all inventory only at the end of the year.
B. deciding whether to maintain records on a periodic or perpetual basis.
C. determining what goods to include in inventory.
D. choosing the method for allocating goods available for sale to ending inventory and cost of goods sold.

The answer is A?

To determine the major issue in inventory accounting, we need to consider each option and understand its significance.

A. Determining whether to take inventory using cycle counts as opposed to counting all inventory only at the end of the year refers to the frequency and method of conducting inventory counts. This decision impacts the accuracy and efficiency of tracking inventory levels throughout the accounting period.

B. Deciding whether to maintain records on a periodic or perpetual basis involves how inventory transactions are recorded and updated. Periodic inventory systems require occasional physical counts to determine the ending inventory and cost of goods sold, while perpetual inventory systems continuously track inventory levels through real-time updates.

C. Determining what goods to include in inventory refers to the inclusion or exclusion of certain items in the inventory count. This decision might arise when distinguishing between finished goods, work-in-progress, and raw materials.

D. Choosing the method for allocating goods available for sale to ending inventory and cost of goods sold involves the selection of a specific inventory costing method (e.g., First-In, First-Out - FIFO; Last-In, First-Out - LIFO; Average Cost). This decision affects the valuation and profitability of inventory and cost of goods sold.

Considering the options above, the major issue in inventory accounting is subjective and may vary based on the circumstances. However, option B (deciding whether to maintain records on a periodic or perpetual basis) is generally considered a key consideration in effective inventory management and accurate financial reporting. Therefore, the correct answer is B.