Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 1

Group Assignment-Evaluating an Inventory System
Identify one local business that uses a perpetual inventory system and another that uses a periodic system.nterview an individual in each organization who is familiar with the inventory system and the recording of sales transactions.
Instructions
Separately ftir each business organization:
a.escribe the procedures used in accounting for sales transactions, keeping track of inventory levels, and determining the cost of goods sold.
b.xplain the reasons offered by the person interviewed as to why the business uses this type of
system.
c.ndicate whether your group considers the system in use appropriate under the circumstances.f not, recommend specific changes.xplain your reasoning.