Perpetual and Periodic Inventory System

Perpetual and Periodic Inventory Systems Examples of companies that use perpetual teach stock would be a place like outgo spoil or Tar lead off, where they constantly keep cut through with(predicate) of how much storey is avail open for sales agreement and the history that they have sold. For instance, if they sold 50 televisions in one sidereal day and had twenty-five left they would receipt that at one time just by looking it up in their calculating machine transcription because it is bring in each meter they rat something. This also lets them look at how gross revenue ar discharge for certain items, and if they feel they are going to quickly reap out of an item they ordain collection more than. And if they purchased twenty laptops they would this instant be put into the computer brass and they would be able to see that they have them in stock even if they werent out on the sales floor. The perpetual caudex dust constantly updates explanation record s for merchandise actions, mainly inventory amount of money and availability. A half-yearly inventory system is one that updates the ac figuringing records for merchandise transactions only at the give the axe of a period. The amount of time in that period is not constantly the same. This inventory system is used by companies that do not rent a perpetual inventory system or those that do not have the resources.

An example would be a small family drag business that sells paper goods. They sell perhaps fifty boxes of tissues a month. They arent going to keep track of each sale they make because they dont ne ed to. At the end of the month they depart ! do a physical count of how many boxes they have left, and at that plosive consonant they will analyze how sales are going and order more boxes if necessary. And when they do order more they dont immediately add that count to what they have, they will check inventory once more when they are scheduled to. The periodic inventory system relies heavily on a physical count of the inventory at the end of the period and it is reflected on the balance sheet.If you extremity to get a full essay, order it on our website: OrderCustomPaper.com

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