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Periodic vs. Perpetual Inventory

Education Community Accounting Periodic vs. Perpetual Inventory

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This topic contains 1 reply, has 2 voices, and was last updated by  Anele Ndlovu 4 months ago.

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  • #520

    Edward Yeo
    Participant
    • Beginner Colearner

    What are the differences and advantages/disadvantages of each system?

  • #674

    Anele Ndlovu
    Participant
    • Beginner Colearner

    Perpetual: You always have a cost of sales and a trading stock account value which can be compared to stock takes.

     

    Periodic: Less capital to be outlayed on expensive barcoding equipment (ie. cheaper)

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