Inventory Accounting Systems: The two main types of inventory accounting systems according to the US GAAP (Generally Accepted Accounting Principles) are periodic and perpetual. The traditional method was periodic which was used in the past but now mostly perpetual accounting is used. Under periodic system, the accounting was done at a certain period. But with the evolution of trade and commerce, the perpetual method has taken its place. The systems are integrated so as to update the information in the master data which shall serve as input to all the departments such as production, ordering, sales, inventory etc. The two main types of inventory accounting systems

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Chapter 5, Problem 2QC

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Inventory Accounting Systems: The two main types of inventory accounting systems according to the US GAAP (Generally Accepted Accounting Principles) are periodic and perpetual.

The traditional method was periodic which was used in the past but now mostly perpetual accounting is used. Under periodic system, the accounting was done at a certain period. But with the evolution of trade and commerce, the perpetual method has taken its place. The systems are integrated so as to update the information in the master data which shall serve as input to all the departments such as production, ordering, sales, inventory etc.

The two main types of inventory accounting systems

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