Difference between Periodic and Perpetual Inventory System



Difference between Periodic and Perpetual Inventory System


Distinguish, differentiate, compare and explain what is the difference between Periodic and Perpetual Inventory System. Comparison and Differences.

Difference between Periodic and Perpetual Inventory System

1. In periodic inventory system, as the name suggests it maintains periodic intervals. Perpetual inventory system does not maintain periodic intervals.

2. Periodic is not a better control system over inventories whereas Perpetual is a better control system over inventories.

3. The periodic inventory system is widely used whereas Perpetual is narrowly used.

4. The periodic inventory system has good scope in small business. The perpetual inventory system has good scope for a large business.

5. Periodic inventory system shows the cost of goods sold at the end of the accounting period. Perpetual inventory system shows the cost of inventory on hand at any time.

6. Periodic inventory system supports lower unite value whereas Perpetual supports higher unit value.




Tags:

Difference between Perpetual Inventory System vs Periodic

Periodic vs Perpetual Inventory System

Differences between Perpetual Inventory System vs Periodic

Image Credits: Freepik

Spreading Knowledge Across the World

USA - United States of America  Canada  United Kingdom  Australia  New Zealand  South America  Brazil  Portugal  Netherland  South Africa  Ethiopia  Zambia  Singapore  Malaysia  India  China  UAE - Saudi Arabia  Qatar  Oman  Kuwait  Bahrain  Dubai  Israil  England  Scotland  Norway  Ireland  Denmark  France  Spain  Poland  and  many more....