Briefly Compare and Contrast a Continuous Inventory System to a Periodic

question 16

Essay

Briefly compare and contrast a continuous inventory system to a periodic inventory system listing the advantages and disadvantages of each.

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Definitions:

Instant Availability

The immediate accessibility of resources or services, often used in context with banking and funding.

Process Cost Accounting

An accounting methodology used for homogenous products that accumulates costs for each process or department and assigns them to units of output.

Factory Overhead

All indirect costs associated with manufacturing, encompassing the expenses incurred in the process of producing goods besides direct materials and direct labor.

Work In Process

Inventory that is in the production process but not yet completed; reflects goods that are being manufactured but aren't finished products.