Periodic inventory systems were historically used by companies that sold large quantities of low-value items.

Question

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Periodic inventory systems are a cost-effective method used by companies that sell low-value items in bulk. This method requires the physical counting of inventory at regular intervals, rather than tracking inventory on a real-time basis. This approach was common before the advent of computerized tracking systems, which made it more efficient to track inventory in real-time.

Periodic Inventory Systems Were Historically Used by Companies That Sold