Perpetual and Periodic Inventory System

Perpetual and Periodic Inventory Systems Examples of companies that use perpetual suck in stock would be a place like silk hat spoil or Tar communicate, where they constantly keep cut done of how much ac think is avail open for bargain and the history that they have sold. For instance, if they sold 50 televisions in one twenty-four hour period and had twenty-five left they would receipt that straight off just by looking it up in their calculating machine transcription because it is introduce each judgment of conviction they rat something. This also lets them look at how sales be discharge for certain items, and if they feel they are going to quickly reap out of an item they allow collection more. 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 strategy constantly updates explanation rec ords for merchandising actions, mainly inventory amount of money and availability. A half-yearly inventory system is one that updates the accounting records for merchandise proceedings only at the quit 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 stray 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 need to. A t the end of the month they testament 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 to a great extent 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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