In Australia, where most accounting is computerised, the use of the periodic inventory system is declining. Which of the following businesses is still most likely to use the periodic approach to accounting for inventory?

Question

Quizplus · Accepted Answer

A chemist shop is most likely to use the periodic inventory system as they have a relatively small range of products with high unit costs, which do not change frequently. This makes it more efficient and cost-effective to conduct a physical count of inventory at the end of each accounting period rather than constantly tracking inventory levels through a computerised system.

In Australia, Where Most Accounting Is Computerised, the Use of the Periodic