Discussion 3
From a strategic point of view, what is the major disadvantage of using a periodic inventory system? Is there any disadvantage to using a perpetual inventory system, other than the higher cost of setting one up? How would you know if a company is using a periodic or a perpetual inventory system (from an accounting perspective)? All answers have to relate to the information provided in the chapters but students can also add their own ideas and innovative solutions.
Please answer all three questions and then comment on another student’s post.
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