Accounting for inventories What are the advantages!!
Accounting for inventories What are the advantages!!
1) What is period-end inventory accounting?
Recording of inventories at the end of the period (Periodic) is the recording of inventories and costs. Sales that are not recorded during the period, the account balance is therefore the beginning of the period. but will record everything at the end of the period This method is suitable for businesses that have a large number of products. The advantage is that it is easy to do and does not waste a lot of time. But there is a disadvantage. will not be able to know the balance immediately
2) What is perpetual inventory accounting?
Perpetual inventory accounting is an inventory accounting that records every movement of business operations. Whether it's the amount of purchases, sales, deliveries and returns Therefore making it possible to know the balance at all times This method is suitable for businesses that have high-priced products or a small number of products. The advantage is that you can balance all the time. But there is a disadvantage. There are a lot of accounting records.
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