In which method is inventory inspection carried out at timed intervals (e.g., weekly, monthly, annually)?

In which method is inventory inspection carried out at timed intervals (e.g., weekly, monthly, annually)?

• A. Visual Method
• B. Periodic Method
• C. Perpetual Method
• D. Setting Order Points

Answer: (B)

Inventory inspections done at fixed time intervals describe the periodic inventory system. In this approach, you don’t update the inventory balance after every sale or receipt. Instead, you record changes during the period and perform a physical count at regular intervals (weekly, monthly, annually) to determine the actual on-hand quantity. After this physical count, ending inventory and cost of goods sold are calculated and the records are updated accordingly. This differs from the perpetual method, which updates inventory continuously with each transaction, and from approaches focused on when to reorder (setting order points) or informal visual checks, which aren’t about scheduled counts.

Inventory inspections done at fixed time intervals describe the periodic inventory system. In this approach, you don’t update the inventory balance after every sale or receipt. Instead, you record changes during the period and perform a physical count at regular intervals (weekly, monthly, annually) to determine the actual on-hand quantity. After this physical count, ending inventory and cost of goods sold are calculated and the records are updated accordingly. This differs from the perpetual method, which updates inventory continuously with each transaction, and from approaches focused on when to reorder (setting order points) or informal visual checks, which aren’t about scheduled counts.