Question

Explain the difference between Perpetual and Periodic inventory sustems and let ys know why anyone would use Periodic inventory in this computerized age.

Answer 1

.. Perpetual Periodic It relies on → It relies on continual track of physical count inventory balances Occassionally. - Difficult to → possible to maintain manual , maintain manual records records. → It informs inventory - It informo inventory - and cost of sales and cost of goods sold. - Balancing figere is » Balancing figure is inventory coas → Doesnot influence | →. Influences business Business operation. I . operations. . Anyone in this computerized age ise Periodic inventory because its simple. We can easily update purchases & other related accounts. People prefer computerized techniques to find inventory rather than keeping a constant count.