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    dark88's Avatar
    dark88 Posts: 1, Reputation: 1
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    #1

    Oct 10, 2008, 03:50 AM
    Periodic or perpetual
    Hi... I want to ask what's better periodic system or perpetual system for accounting invintories?
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #2

    Oct 10, 2008, 04:46 AM
    Periodic inventory system, although time consuming, requiring updates at the end of each fiscal event, or quarterly, or whatever, is more cost effective and allows one to have their hand on company finances at any given time. Works if you want your dollar value accounted for every quarter, if that's the way you do it. Even more effective if you use the depreciating method.

    Each system is equally as effective, it depends on the commodity being sold. Periodic works particularly well with companies dealing in the parts (industrial) sector.

    Dark88, I know this is probably a homework question and just for your own information, please don't type 'wanna know'; that is not grammatlically correct. It is 'I want to know'.
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