Periodic Inventory System

jxtuck · #1 Dec 13, 2007, 01:07 PM

What would be a disadvantages of a larger business using a periodic inventory system?

Future Accountant · Dec 14, 2007, 07:27 PM

Periodic system does not track the inventory constantly but does it at the end of a fiscal accounting period when inventory is counted to calculate the cost of goods sold whereas perpetual inventory system tracks the inventory constantly on hand and cost of goods sold.

Future Accountant · Dec 14, 2007, 07:27 PM

perpetual is better than periodic i would say

Diamone · Jan 13, 2008, 01:08 PM

I need to know what a perpetual inventory system is



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