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When four-year-old Aislin goes on errands with her dad and whines for a treat, he stops somewhere and buys her a treat. But when she goes on errands with her mom, whining never ends up getting her a treat. Before long, Aislin only whines when she is going on errands with her dad. This is called:
Periodic Inventory System
An inventory accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period.
Beginning Inventory
The value of all inventory that a company has in stock at the start of an accounting period.
Ending Inventory
The final value of goods available for sale at the end of an accounting period, calculated before the new accounting period begins.
Periodic Inventory System
An inventory accounting system where updates to inventory levels are made periodically at the end of accounting periods, rather than after each sale or purchase.
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