What inventory method is used when the inventory balance is updated only at the end of the accounting period?

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Periodic inventory method is used when the inventory balance is updated only at the end of the accounting period. This method requires physical counts of inventory to be taken periodically, and the cost of goods sold and ending inventory balance are calculated at the end of the accounting period. Perpetual inventory method, on the other hand, updates inventory balances continuously as sales and purchases are made. Net income and cost of goods sold are not inventory methods, but rather financial statement items affected by the inventory method used.

What Inventory Method Is Used When the Inventory Balance Is