Accounting -Using the perpetual system, you keep track of the inventory as you use it

| January 31, 2017

Question
Hello,

I need to answer the question and comment on the answers that my classmates’ gave.

QUESTION: (60-80 WORDS)

Using the perpetual system, you keep track of the inventory as you use it. Anyone who took anything from the inventory would need to record it at the moment they took it. Counting supplies at the end of the day or the week or the month still falls under the definition of a periodic system because you are counting it all “periodically.” Let’s see…perpetual means that you constantly keep track of anything coming or going immediately.

Think about today’s technology. Which system is most common?

NAI’S ANSWER: (40-50 WORDS)

The most popular inventory system would be the perpetual. A perpetual system keeps track of inventory real time. An example would be a grocery store. When they scan a product for purchase, the computer system automatically removes it from inventory and orders more. This prevents over stocking of supplies and less warehouse space. At the warehouse, we use to call it a JIT (just in time) system.

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