What is a periodic system of inventory?
The periodic system of inventory is an inventory system used by a business to control inventory.
The inventory balance is shown on the inventory account, and remains the same until a physical inventory count is carried out at the end of the accounting period (hence periodic).
The periodic system of inventory control is used by small businesses as it avoids the need for a perpetual inventory system which tracks each item of inventory in and out of the business.
For further information on periodic inventory systems see the Wikipedia definition.
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