The primary difference between the periodic and perpetual inventory systems is:

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In the perpetual inventory system, inventory transactions are recorded continuously, thus providing a real-time view of inventory levels and determining the cost of goods sold with each sale. On the other hand, the periodic inventory system only records inventory transactions at the end of the period, making it difficult to determine the cost of goods sold during the period accurately. Therefore, the primary difference is that the perpetual system provides more up-to-date and accurate information about inventory levels and cost of goods sold. The reported amounts of the ending inventory and sales revenue can vary depending on the calculation method used in both systems.

The Primary Difference Between the Periodic and Perpetual Inventory Systems