What is one advantage of the periodic inventory system?

What is one advantage of the periodic inventory system?

An advantage of the periodic inventory system is that there is no need to have separate accounting for raw materials, work in progress, and finished goods inventory. All that is recorded are purchases.

What is advantage of periodic review system?

An advantage of the periodic review system is that inventory is counted only at specific time intervals. You do not need to monitor the inventory level between review periods. This system also makes sense when you order several different items from a supplier.

What are the advantage of periodic inventory system over a perpetual system?

While periodic inventories are the cheaper process, conducting one for a larger business might prove to be an arduous task as it is time-consuming and requires dedicated manpower. On the other hand, a perpetual inventory system can be faster but more costly in some instances.

What is the purpose of periodic inventory?

A periodic inventory system is a form of inventory valuation where the inventory account is updated at the end of an accounting period rather than after every sale and purchase. The method allows a business to track its beginning inventory and ending inventory within an accounting period.

Which of the following is an advantage of the periodic inventory system quizlet?

A periodic inventory system provides better control over inventories than does a perpetual inventory system. A perpetual inventory system computes cost of goods sold only at the end of the accounting period. A periodic inventory system computes cost of goods sold each time a sale occurs.

What are the features of periodic inventory system?

A periodic inventory system only records updates to inventory and costs of sales at scheduled times throughout the year, not constantly. Merchandise Inventory and Cost of Goods Sold are updated at the end of a period. Cost of goods sold (COGS) includes all elements of cost related to the sale of merchandise.