Bertin's Boutique Inc., a furniture store, uses a periodic inventory system. The company president has heard that a perpetual inventory system would help him make better decisions in the day-to-day management of his business. He has come to you, the company accountant, for more information.
Instructions
Prepare a reply to the president that includes a brief description of the perpetual inventory system. Identify three disadvantages and three advantages associated with implementing such a system.

Question

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The Answer of Bertin's Boutique Inc., a furniture store, uses a periodic inventory system. The company president has heard that a perpetual inventory system would help him make better decisions in the day-to-day management of his business. He has come to you, the company accountant, for more information.
Instructions
Prepare a reply to the president that includes a brief description of the perpetual inventory system. Identify three disadvantages and three advantages associated with implementing such a system.