Under the periodic inventory system a/an ___________ is required before the cost of sales can be estimated.

Question

Quizplus · Accepted Answer

A stocktake (also known as physical inventory count) is required under the periodic inventory system to determine the ending inventory balance which is needed to calculate the cost of sales for the period. This involves physically counting and valuing each item of inventory on hand. Errors in recording inventory transactions throughout the period may result in an inaccurate ending inventory balance if a stocktake is not performed.

Under the Periodic Inventory System A/an ___________ Is Required Before