The primary difference between the inventory system of a manufacturing company and a retail company is that a retail company uses a periodic system and a manufacturing firm uses a perpetual system.

Question

Quizplus · Accepted Answer

The statement is incorrect as both retail and manufacturing companies can use either periodic or perpetual inventory systems, depending on their needs and preferences. The choice of inventory system is not determined by the type of company but rather by factors such as the volume of sales, complexity of the products, and availability of technology.

The Primary Difference Between the Inventory System of a Manufacturing