cost of merchandise sold.
Perpetual system Perpetual system
Purchases
Perpetual System is that system in which company continuously updates the value of inventory while in periodic system inventory valuation is done only for closing inventory when company done physical inventory calculation.
Perpetual
no
Perpetual system Perpetual system
Purchases
Perpetual System is that system in which company continuously updates the value of inventory while in periodic system inventory valuation is done only for closing inventory when company done physical inventory calculation.
no
Perpetual
A perpetual system does not account for theft.
Yes
The history of inventory systems depends on the type of inventory system being discussed. There are two main types of inventory systems, the perpetual inventory system and the periodic inventory system.
Perpetual System
inventory
periodic inventory system
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.