A factor that might suggest that a periodic inventory system is appropriate is that all merchandise is stored at the sales site.

Question

Quizplus · Accepted Answer

If all merchandise is stored at the sales site, it is easier to keep track of the inventory on hand and a periodic inventory system may be appropriate. A periodic inventory system involves physically counting and recording inventory levels periodically, rather than using a continuous tracking system like a perpetual inventory system.

A Factor That Might Suggest That a Periodic Inventory System