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Periodic inventory is conducted by taking a physical count of inventory at specific intervals, such as monthly, quarterly, or annually. During this process, the quantities of goods on hand are recorded, and this data is used to update inventory records and calculate the cost of goods sold. Unlike perpetual inventory systems, which continuously track inventory levels, periodic systems rely on these counts to assess inventory status and financial performance. This method can be simpler and less costly, but it may provide less timely information about inventory levels.
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What is periodic inventory?
The system of inventory where updates are made on a periodic basis is a periodic inventory. In this type of inventory, there is no effort made to keep the records of the cost of goods sold or the inventory up-to-date.
A better way of saying you did inventory?
conducted inventory, performed inventory, reconciled inventory
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
What is a difference between periodic inventory and perpetual inventory?
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
What are the disadvantages of a periodic inventory system?
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
What is periodic inventory?
The system of inventory where updates are made on a periodic basis is a periodic inventory. In this type of inventory, there is no effort made to keep the records of the cost of goods sold or the inventory up-to-date.
A better way of saying you did inventory?
conducted inventory, performed inventory, reconciled inventory
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
What is a difference between periodic inventory and perpetual inventory?
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
What are the disadvantages of a periodic inventory system?
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
What are the disadvantages of periodic inventory system?
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
Is periodic or perpetual inventory method best for mining company?
Periodic
What type of research is conducted during the course of inventory to determine the reason for inventory discrepancies?
conclusive
What type of research is conducted during the course of the inventory to determine the reason for inventory discrepancies?
conclusive
What companies today use periodic inventory?
Companies in a variety of industries use periodic inventory systems. Retailers, wholesalers, and small businesses often opt for periodic inventory systems due to their simplicity and lower cost compared to perpetual inventory systems. Examples of companies that may use periodic inventory include small grocery stores, antique shops, and local convenience stores.
An account used in the perpetual inventory system that is not used in the periodic inventory system is?
Purchases
What are the similarities between perpetual and periodic inventory system?
Perpetual: All inventory entries directly affect inventory Periodic: All inventory entries affect other accounts, which are then closed to inventory. Example: A company purchased $100 worth of inventory on account Perpetual: Inventory (Debit) 100 Accounts Payable (Credit) 100 Periodic Purchases (Debit) 100 Accounts Payable (Credit) 100 Later with Periodic (usually at the end of the reporting period) Inventory (Debit) 100 Purchases (Credit) 100 This last entry closes purchases and updates your inventory account.
