Periodic inventory system

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Periodic inventory system is an inventory system that counts inventory only at the end of the accounting period. It also calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Periodic inventory system. An inventory system that counts inventory only at the end of the accounting period. It also calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.

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