15 May LIST AT LEAST TWO ADVANTAGES AND TWO DISADVANTAGES OF EACH INVENTORY SYSTEM.
INVENTORY COSTING PROJECT: Perpetual versus Periodic Inventory Systems
You may prepare answers to the following questions and/or instructions, providing specific real-world examples, and citing sources where appropriate. the overall assignment should also be professionally done, with proper grammar and terminology. It is expected that you have a cited document for the research aspect of this project.
1)Define the difference between a perpetual inventory versus a periodic inventory system, as was described in your text, but also including additional review and research about the methods. Discuss which activities related to the purchase and sale of merchandise transact in both (how they differ and are the same).
2)List at least two advantages and two disadvantages of each inventory system. Be sure to not only list them, but to describe why they are advantages or disadvantages and explain.
3)SEARCH! Research a field of business you are interested in (potentially in your major) and find out if the businesses in your chosen field use the perpetual or periodic method. (If this is not applicable, find an alternative (something you are interested in – for example, it can be Coca Cola.) Then, find a business (preferably in the same industry) that uses the alternate inventory system; research and then compare and contrast the organizations (its product, history, strategy, customers, etc.). This research may include interviews with business owners.
4)Describe why you think that the inventory system the business you first selected uses is valuable for them – or why they chose the method. Do the same for the alternate company. Again you should be using real-world companies and citing sources where applicable.
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