IDNLearn.com provides a collaborative environment for finding and sharing answers. Get accurate answers to your questions from our community of experts who are always ready to provide timely and relevant solutions.

Why is inventory shortages perpetual inventory and not accounted for in periodic inventory system

Sagot :

Answer:

Inventory shortages can be managed differently depending on whether a perpetual or periodic inventory system is used.

Explanation:

Inventory shortages are associated with perpetual inventory because it provides real-time tracking and immediate updates, allowing for quick identification and correction of discrepancies. In contrast, the periodic inventory system only updates inventory levels at specific intervals, making it difficult to pinpoint shortages until the end of the period.