The periodic inventory system has traditionally been used most commonly by companies that sell
A)low-priced,high-volume merchandise.
B)low-priced,low-volume merchandise.
C)high-priced,low-volume merchandise.
D)high-priced,high-volume merchandise.

Question

Quizplus · Accepted Answer

The periodic inventory system is best suited for companies that sell low-priced, high-volume merchandise because they have a large volume of transactions and it would be impractical to track each transaction in real-time. Instead, they perform a physical count of their inventory at regular intervals and adjust their accounting records to reflect the change in inventory. This approach is less expensive and requires less resources compared to tracking each transaction in real-time.

The Periodic Inventory System Has Traditionally Been Used Most Commonly