Answer to Question #193947 in Economics for shirline simon

Question

Question:

You own a clothing store and use a periodic inventory system. Research similar companies in the clothing industry and answer the following questions.

1. Which inventory system is most used in clothing stores, periodic or perpetual? (1 mark)

 2. Why can periodic inventory reporting be a better approach to use than perpetual inventory reporting for this type of industry? Explain one reason (1 mark)

3. State one advantage and one disadvantage to the periodic inventory method? (2 marks)

4. State one other type of business that may use the periodic inventory method rather than the perpetual method (1 mark)

Answer 1

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