Asked by Jezelle Zapanta on Jul 28, 2024
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Under a periodic inventory system, the cost of inventory on hand at the end of the accounting period is determined by a physical count of the inventory.
Periodic Inventory
A method of inventory valuation in which the inventory is physically counted at specific intervals, and the cost of goods sold is calculated at the end of the accounting period.
Physical Count
A procedure conducted to verify the actual quantity of items or materials present in inventory, typically performed at the end of an accounting period.
- Differentiate the characteristics of perpetual versus periodic inventory systems, including their related financial operations.
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Learning Objectives
- Differentiate the characteristics of perpetual versus periodic inventory systems, including their related financial operations.
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