Final answer:
The perpetual inventory system continuously updates inventory records in real-time, while the periodic inventory system updates records periodically, usually at the end of an accounting period.
Step-by-step explanation:
The perpetual inventory system and the periodic inventory system are two methods used in accounting to track the quantity and value of inventory.
In a perpetual inventory system, the inventory records are continuously updated in real-time. Each time a sale is made or inventory is received, the system immediately adjusts the records to reflect the new inventory levels. This method provides a more accurate and up-to-date view of the inventory.
In a periodic inventory system, the inventory records are only updated periodically, usually at the end of an accounting period. The inventory level at the beginning and end of the period is recorded, and the cost of merchandise sold is calculated by subtracting the ending inventory from the beginning inventory plus purchases. This method is less time-consuming but may not provide a real-time view of the inventory and may require estimations for calculations.