For a manufacturer a periodic inventory system has many limitations and deficiencies. These limitations____________ the number of products and producing departments.

Question

Quizplus · Accepted Answer

Periodic inventory system relies on physical stocktaking at the end of the period, which means the limitations and deficiencies increase with the number of products and producing departments. The more products and departments a manufacturer has, the more difficult and time-consuming it becomes to conduct physical inventory counts accurately. Therefore, the limitations and deficiencies are directly proportional to the size and complexity of the manufacturing operation.

For a Manufacturer a Periodic Inventory System Has Many Limitations