Question

You can keep track of inventory via two ways

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Answer 1

The two ways to keep track of inventory are the periodic inventory system and the perpetual inventory system.

Step-by-step explanation:

When it comes to keeping track of inventory, there are two main methods that businesses use:

• Periodic inventory system: In this method, the inventory count is done at specific intervals, such as weekly, monthly, or annually. It involves physically counting the items in stock and adjusting the inventory records accordingly.
• Perpetual inventory system: This method relies on real-time tracking of inventory using technology, such as barcode scanners or point-of-sale systems. The inventory is updated automatically whenever a purchase or sale is made.

Both methods have their advantages and disadvantages, and the choice depends on the nature and size of the business.