A small local convenience store is opening in your neighborhood.Inventory is limited and keeping initial start-up costs low is a priority.What type of inventory system would you recommend? A)perpetual B)periodic C)specific identification D)Company is so small one is not needed.

Question

Quizplus · Accepted Answer

For a small convenience store with limited inventory, a periodic inventory system would be the most cost-effective option. This system involves physically counting inventory at regular intervals (e.g. monthly or quarterly) and adjusting records accordingly. It requires less investment in technology and personnel than perpetual inventory systems, which involve continuous monitoring of inventory levels through software or barcode scanners. Specific identification is a method used for high-value or unique items, where each item is individually tracked and identified by a serial number or other unique identifier. As this store has limited inventory and likely no high-value or unique items, specific identification would not be necessary. Option D (not needing an inventory system) is not a good choice as even small businesses benefit from some type of inventory control to manage stock levels, prevent stockouts, and minimize losses due to theft or spoilage.

A Small Local Convenience Store Is Opening in Your Neighborhood