Comparing Periodic And Perpetual Inventory Accounting 101 Research Paper

2076 words - 9 pages

Accounting 110
Professor Copeland
October 21st, 2018
Nuts To You vs. International Spice & Food
Perpetual inventory is an inventory system when inventory is adjusted continuously throughout an accounting period. Every time a product is sold, the inventory decreases and every time products are purchases for inventory purposes, the count increases. In perpetuals inventory system, inventory is also adjusted when products are moved from one location to another, items picked from inventory for use in the production process or damage to product (1). Perpetual inventory system is preferred considering how it has the advantage of providing a more up to date inventory count. However, overtime the number can become less accurate due to theft or unrecorded transactions (2). Another advantage of perpetual inventory system is changes to inventory levels are recorded in real time, when inventory is purchased and when it is sold. This provides you with the ability to run reports that can immediately identify inventory items that are running low. It also prevents being out-of-stock and losing customers because of it. A perpetual inventory system is allowed to yield a much more accurate count if it has a well-organized computer database to go along with it. One disadvantage of a perpetual inventory system involves the setup cost. Most systems require the purchase of new equipment and inventory software. This equipment includes point of sale scanners which read the bar code of each item. Scanners are also required when items are received into inventory. Perpetual inventory systems also add to labor costs since all inventory must be entered into the system. Another disadvantage is the need for increased monitoring because of employee errors or customer theft requires an additional financial investment. Security monitors typically need to be installed and some companies hire security personnel. Overall, this system is a low more accurate and useful for larger companies as it eliminates the need to do physical inventory more than once a year.
Periodic inventory system is a system that is useful for recording transaction in a low technology and high-volume environment. It only updates the ending inventory balance in a general ledger when a physical inventory count is conducted. Considering how time consuming and tedious physical inventory counts are, they are only conducted once a quarter or year. However, the accounting system shows the counts from the last physical inventory count which could be from 9 months ago. Periodic inventory has its advantages and disadvantages. One of the advantages is that this system is useful for smaller business that have very minimal amount of inventory. Considering how small the business might be, it is much easier to count inventory along with estimating the cost of goods sold for interim periods (3). Another advantage is since no permanent employee is required for physical counting of merchandise inventory under this system it...


capital budgeting accounting and finance - berkeley - paper

2820 words - 12 pages Inventoryt - OPEXP)t -1 0 0 0 -(30-0) =-30 30 1 (1-0.4)×0.5×(60-30) -(15-30) 15 = 9 =15 = 24 2 (1-0.4)×0.5×(60-30) -(0-15) 0 = 9 =15 = 24 Donatella Taurasi (Fung Institute) Accounting and Finance for Engineers – Lecture Notes Spring 2019 16 / 21 Understanding the Cash Flow Formula Changes in Working Capital Example (Inventory) You run a chain of stores that sells sweaters. At t = 0: you buy (and pay for) 1M sweaters at a price of $30 each. At t = 1

Marijuana Research and Why It Should Be Legal - Writing-101 - Research Paper

1380 words - 6 pages 1 Elias Gonzalez Professor Bucchino WRT-101-12P - Research Paper 15 December 2018 Replacing illegal with legal Since 1937, marijuana has been illegal to possess or transfer in the United States. However, after decades of research, it has been proven that marijuana is safer than other legal substances, can be used for economic strategy to create jobs and generate tax, and also help aid people away from some addictions. As of today, there are 11

Essay on Indian Scientist Sir CV Raman - Physics 101 - Essay and research paper

1017 words - 5 pages Kumbakonam Kumbakonam Bhuvan Kumbakonam QL Summer Physics 2o Mr. Hewes 15 July 2018 Physicist Research Project Sir Chandrasekhara Venkata Raman, Sir CV Raman for short, is an Indian born Physicist. He was born in the South Indian town of Tiruchirapalli, on November 7th 1888. Sir Raman’s father, Chandrasekaran Ramanathan Iyer was a student teacher in the fields of Mathematics and Physics. Mr. Iyer taught Sir Raman’s mom how to read and write. Mr

accounting as an integrated part of today's world - english - research paper

1489 words - 6 pages stakeholders need to evaluate the financial performance of a business. This paper deals with the scope of accounting, the average wages of an accountant and the professional accounting bodies in different parts of the world. The accounting jobs in the U.S and internationally keep increasing year over a year. Accountants and auditors have a positive trend in the U.S. “In 2017, there were 1.24 million accountants and auditors and 1.53 million

is global warming happening right now, and is it causing climate shifts on the earth? - english 101 - research paper

3230 words - 13 pages ERHABOR 1 ERHABOR UWAILA PROFESSOR PETKOVIC ENGLISH 101 16 DECEMBER, 2015. Global Warming is Destroying Our Planet Is global warming happening right now, and is it causing climate shifts on the Earth? Scientists are still proving this theory by researching data throughout the world. Though scientists are working hard to verify the theory, all the blame is on us, the consumers. Climate shifts are becoming a problem, and people need to be aware of

lee harvey oswald story behind the scence - eng. 101 - research paper

1753 words - 8 pages Bell 2 Tinasha Bell 23 April 2018 Mrs. Filer Eng. 101 M13 . Born October 18, 1939, Lee Harvey Oswald was born, just two months after the death of his father (Waggoner 27). His youth was spent switching between living with his mother, his aunt, various relatives’ homes and living in many New Orleans Orphanages (McKinley 106). The only father figure Lee ever had in his life, Edwin Ekdahl, was his mother’s third marriage in 1945, which only lasted

The Lies Surrounding Big Pharma - Paradise Valley English 101 - Research Paper

1277 words - 6 pages showed were all reported (Batt 12). These companies have found a way to manipulate the trial to go the way they want it to by “controlling” certain factors that are not necessarily supposed to be “controlled”. “Pharmaceutical companies fund roughly 60% of all biomedical research, 70% of clinical trials and 50% of the costs of continuing medical education programs” (Peltier-Rivest 26).The pharmaceutical companies having this kind of involvement in

The Evolving Criminal Justice System - Saint Xavier University, Criminal Justice 101 - Research paper

4498 words - 18 pages The Evolving Criminal Justice System The Evolving Criminal Justice System Vanessa Acevedo Criminal Justice 101 Dr. Crump 12/8/2017 The Evolving Criminal Justice System The criminal justice system is complex and forever transformationally expanding subject that will most likely never remain static for long. The existing field of criminal justice aids our society and improves it in numerous ways and over the course of over 400 years, the system

Comparing and contrasting race-relations in the U.S. and Brazil - Honors Global Scholars Seminar - Research Paper

447 words - 2 pages record of Brazilian than American slavery. As a result, my research will evaluate Brazil’s racialised structures (workplaces, markets, educational institutions) and racialised images (cinema, television, music, texts) to understand the polarization and politicization of racial antagonisms. However, interviews, articles, and personal stories will best capture the emotional and psychological weight of discrimination.

Research Paper on Autism and Sleep - ENGL 255 - Research Paper

1825 words - 8 pages these implications. By discussing current research on sleep disturbances in children with ASD, this paper illustrated first, the impact sleeping problems have on children with ASD’s family. Second, how sleep disturbances affect children with ASD and their behaviours, and lastly the correlation between lack of sleep and poor educational performance known. Richdale (1998) suggests that further research is necessary concerning intervention and cause

Comparing Welfare Internationally - Criminology, Health and Social Care - Research Paper, Literature Review

1566 words - 7 pages Free ). The Syrian refugee flood undoubtedly has intensified pre-existing economic and labour market encounters facing host societies including high unemployment and large casual markets, while the vast population increase has produced a massive pressure on resources, services and infrastructure. However, there is also an increasing body of research that suggests the crucial role Syrian refugees’ play in inspiring host economies and even defending host

Healthsouth, Inc – corporate accounting fraud - Baruch College / Cost Accounting - research paper

711 words - 3 pages Healthsouth, Inc – corporate accounting fraud HealthoSouth was one of the largest nationwide chain of orthopedic hospitals in 90’s. Built from a scratch by a talented manager Richard M. Scrushy for $1 million on 1986, its value passed $12billion mark in 1996 when it was first introduced to public stock market. All these growth, however, and large market cap was created by its management that executed one of the largest Wall Street accounting

Media Manipulation and Disinformation - Kaplan - Research Paper

908 words - 4 pages Free Winnie Lim CT0307974 FTDipMComm43 Research Paper 10 January 2019 Proposed Project Title Disinformation and Media Manipulation Proposed Research Area Journalism and Ethics Proposed Topic Media Theories and Media Manipulation Proposed Research Question How is fake news used as propaganda? Rationale for choosing this topic Most people in the world have been misinformed at some point in their lives. Whether it was due to communication noise such as

The Effect of Vitamin D on Psychosis and Schizophrenia - Genesee Community College Psych 101 - 5 Page Research Brief

645 words - 3 pages review concerned with others’ research into the topic at hand, but the authors go much more in depth in their analysis, especially when comparing other’s results to their own research. Comparing & Contrasting Popular & Scholarly Papers While the popular paper is concerned with only other people’s research into the effects of vitamin D on schizophrenia and psychosis patients, the authors of the scholarly paper both analyzed other people’s research and

Good and Bad Cholesterol (LDL and HDL) - Chemistry - Research Paper

1390 words - 6 pages say that most people surpass their amount of cholesterol just in the typical American breakfast. When accounting for other common American lunches and dinners, high in meat, dairy, fat, and processed sugar, the intake of cholesterol is considerably even higher. More often than not, doctors prescribe statins, medication to lower cholesterol, to patients who have elevated cholesterol levels. Statins, while effective in lowering cholesterol, come