Final answer:
The correct answer is option b) Lower cost, delayed tracking. This is because the periodic inventory system is less expensive but does not provide real-time inventory tracking.
Step-by-step explanation:
The question concerns the advantages and disadvantages of the periodic inventory system. When considering the options given, the correct answer that outlines two characteristics of a periodic inventory system is:
- Lower cost, as periodic inventory systems generally require less investment in technology and labor to maintain.
- Delayed tracking, as this type of inventory system does not update inventory levels immediately after each transaction, leading to a less accurate picture of inventory levels between physical counts.
The disadvantages can be significant for businesses that require up-to-date inventory information for operation, and though costs are saved, the delay in tracking can lead to issues such as stockouts and overstocking.