Under the periodic inventory system, a physical inventory must be taken to determine cost of goods sold.

Name: Under the periodic inventory system, a physical inventory must be taken to determine cost of goods sold.
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Under the periodic inventory system, the cost of goods sold is determined by taking a physical inventory at the end of the accounting period. This is because the system does not keep track of inventory levels in real-time like the perpetual inventory system.

Under the Periodic Inventory System, a Physical Inventory Must Be