Chapter 5, Problem S5.1SE

Comparing periodic and perpetual inventory systems

Learning Objective 1

For each statement below, identity whether the statement applies to the periodic inventory system, the perpetual Inventory system, or both.

a Normally used for relatively inexpensive goods

b Keeps a running computerized record of merchandise inventory.

c Achieves better control over merchandise inventory.

d. Requires a physical count of inventory to determine the quantities on hand.

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