Which of the following companies would be most likely to use a periodic inventory system?
A)IBM.
B)First Bank of New York.
C)Sears.
D)A newspaper stand.

Question

Quizplus · Accepted Answer

A newspaper stand is a small retail business that sells a limited range of products, primarily newspapers and magazines. Thus, it is most likely to use the periodic inventory system, which involves physically counting the inventory on a periodic basis (such as at the end of each month) rather than recording each transaction in real-time. Larger companies such as IBM, First Bank of New York, and Sears typically use perpetual inventory systems, where inventory is continuously updated as purchases and sales occur.

Which of the Following Companies Would Be Most Likely to Use