Question

Identify the following as Periodic inventory system or Perpetual inventory system:

a. Normally used for relatively inexpensive goods.
b. Keeps a running computerized record of merchandise inventory.
c. Achieves better control over merchandise inventory.
d. Uses bar codes to keep up-to-the-minute records of inventory.

Answer 1

In Perpetual Inventory Method accounting is kept continuously up to date and involves continual recording of additions to and issues or sales of materials on a daily basis.

Under Periodic method usually an inventory is taken only at year end or at regular intervals.

Step-by-step explanation:

a. Normally used for relatively inexpensive goods.

Periodic Inventory system

b. Keeps a running computerized record of merchandise inventory. Perpetual Inventory System

c. Achieves better control over merchandise inventory.

Perpetual Inventory system

d. Uses bar codes to keep up-to-the-minute records of inventory.

Perpetual Inventory System