A periodic inventory system is a method of valuing inventory in which inventory is counted at predetermined intervals.
What Is a Periodic Inventory System & When Is It Used? (+ Example)
With a periodic inventory system, the determination of inventory levels and calculation of the cost of goods sold (COGS) for a business takes place at regular intervals, as opposed to being a continuous process. A periodic inventory system relies on physical counts of inventory, which are carried out periodically (e.g., monthly, quarterly, or annually), instead…