Asked by Arika DeCara on Apr 27, 2024
Verified
A periodic system of inventory is used when inventory volumes are low and per unit costs are high.
Periodic System of Inventory
An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.
Inventory Volumes
The total amount of goods a company has available for sale or production at any given time, often measured in units or cost value.
- Gain insight into the operational variances between periodic and perpetual inventory systems.
Verified Answer
SM
sayed mahfoodMay 01, 2024
Final Answer :
False
Explanation :
A periodic system of inventory is typically used for items with relatively low per-unit costs and where inventory does not need to be tracked on a daily basis, not specifically for low inventory volumes and high per-unit costs.
Learning Objectives
- Gain insight into the operational variances between periodic and perpetual inventory systems.
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