periodic inventory system
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
low priced high volume merchandise
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.
Purchases
periodic inventory system
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
low priced high volume merchandise
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.
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.
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.
high volume, low cost
As you can see, in merchandising companies we have more special components of revenues and expenses than service companies. Besides, merchandising have two different systems periodic inventory system and perpetual inventory system. Each system has own way to count goods.
Periodic inventories are used by companies that buy large stocks of small items such as discount retailers (wal-mart), clothing stores, grocery stores, department stores, and drug stores. .. Perpertual inventory system is used by companies that make fewer sales of products with higher unit costs such as car dealerships.
1 - Perpetual inventory system 2 -Periodic accounting system