The periodic inventory system works well for small businesses in which the inventory is not large in size or dollar amounts.

Question

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The periodic inventory system is a simple and cost-effective method for tracking inventory levels for small businesses with low inventory volume and value. It involves physically counting the inventory at regular intervals and using that information to adjust the inventory account on the balance sheet. This method is suitable for companies that do not have complex inventory tracking needs or frequently changing inventory levels.

The Periodic Inventory System Works Well for Small Businesses in Which