Final answer:
It's impossible to ascertain whether Montoure company uses a periodic inventory system without additional information about their specific practices. A periodic inventory system is updated at regular intervals, unlike a perpetual system which is updated continuously after transactions.
Step-by-step explanation:
Without specific information regarding the Montoure company's inventory practices, I cannot provide a definitive answer on whether they use a periodic inventory system or not. A periodic inventory system is an accounting method where the inventory is updated in the accounting records on a periodic basis - such as monthly, quarterly, or annually. In contrast, a perpetual inventory system updates inventory balances after each transaction.
Companies make a choice between these systems based on factors like the size of the company, the volume of sales, the complexity of inventory items, and the resources they have for inventory management. Large retailers or companies with high volumes of sales often use a perpetual system for better inventory management and real-time data. Smaller companies might opt for the more straightforward and less resource-intensive periodic system.