Accounting -Which inventory system is more popular today than prior to the mid-1960s

| January 31, 2017

Question
Hello,

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

QUESTION: (80-100 WORDS)

Perpetual or Periodic Inventory?

Hello Everyone!

Which inventory system is more popular today than prior to the mid-1960s? Why do you believe that this particular system is more popular today? Why would a company employing a perpetual inventory system still take a physical inventory periodically?

See the question above! This is a great question because it allows us to discuss real life inventory and the effects of technology. It will take a bit of thought, but some of you might remember when your company changed from one method to the other.

NAI’S ANSWER: (50 WORDS)

I use to work in a warehouse many years ago and we used a perpetual inventory system. Every morning we would do a quick inventory of all of the supplies. Once a Month, we would do a periodic inventory as well. Using the perpetual helped us reorder supplies quicker. if we waited until the end of the month, we may run out of a product. A perpetual system allows a company to have more control over inventory and is much more popular today.

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