Back to category: Business Limited version - please login or register to view the entire paper. What are two principal types of inventory systems? There are two principal types of inventory systems, the perpetual system and the periodic system. The perpetual inventory system records are kept perpetually up-to-date on inventory and the cost of goods sold (Meigs & Williams & Haka & Bettner 1999: 199). On the contrary, the periodic inventory system takes no effort on keep up-to-date records of either the inventory or the cost of goods sold. Instead, inventory amounts are determined only periodically usually at the end of each year (Meigs & Williams & Haka & Bettner 1999: 202). The different between these two systems are how they record on the accounting ledger. The perpetual inventory system records the cost of inventory purchased as an asset, and records t... Posted by: Joel Chibota Limited version - please login or register to view the entire paper. |
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