DQ 2 Week 1 - so often. The periodic method keeps track of...

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What is the perpetual method of tracking inventory? How does it differ from the periodic method of tracking inventory? Why would a company choose one method over the other method? Which is the best method? Why? The perpetual method of tracking inventory is when a company records all goods being sold and all purchases as these transactions occur. Perpetual inventory keeps an up to date record of the balances of inventory and cost of goods sold and usually is done electronically. The periodic method of tracking inventory is when a company only determines inventory every
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Unformatted text preview: so often. The periodic method keeps track of inventory at the beginning of a period it then adds all purchases for that period to beginning inventory. This determines the cost of goods available for sale for this period. A smaller company that doesnt have the means to buy an electronic system such as a bar code system. I think the perpetual method of tracking inventory is the better of the two because there is less room for any errors when inventory is being tracked constantly. It also give a company better insight to what products are selling the best....
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This note was uploaded on 04/04/2012 for the course ACC 422 taught by Professor Susan during the Spring '08 term at University of Phoenix.

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