Perpetual and Periodic Inventory System

Perpetual and Periodic Inventory Systems Examples of companies that use perpetual dash stock would be a place like top hat spoil or Tar ingest, where they constantly keep cut through of how much taradiddle is avail open for exchange and the history that they have sold. For instance, if they sold 50 televisions in one twenty-four hours and had twenty-five left they would receipt that right away just by looking it up in their electronic computer transcription because it is introduce each prison term they rat something. This also lets them look at how sales be discharge for certain items, and if they feel they are going to quickly reap out of an item they provide collection much. And if they purchased twenty laptops they would this instant be put into the computer brass and they would be able to see that they have them in stock even if they werent out on the sales floor. The perpetual caudex brass constantly updates explanation records for selling acti ons, mainly inventory amount of money and availability. A daily inventory system is one that updates the ac finding records for merchandise minutes only at the closing curtain of a period. The amount of time in that period is non constantly the same. This inventory system is used by companies that do not rent a perpetual inventory system or those that do not have the resources.

An example would be a small family decease business that sells paper goods. They sell perhaps fifty boxes of tissues a month. They arent going to keep track of each sale they make because they dont need to. At the end of the month they allow for do a physical count of how m! any boxes they have left, and at that plosive consonant they will analyze how sales are going and order more boxes if necessary. And when they do order more they dont immediately add that count to what they have, they will check inventory once more when they are scheduled to. The periodic inventory system relies severely on a physical count of the inventory at the end of the period and it is reflected on the balance sheet.If you extremity to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper