1. a) Compare the periodic versus the perpetual system as a control device. (4 marks) XXXXXXXXXXb) What sort of organisations are likely to use the periodic inventory system? What kind of...

a) Compare the periodic versus the perpetual system as a control device. (4 marks)
Answer:
The periodic inventory system uses an occasional physical count to measure the level of inventory and the cost of goods sold. The inventory account and the cost of goods sold account are updated at the end of a set period-this could be a month, a quarter, or once a year.
The perpetual system keeps track of inventory balances continuously, with updates made automatically whenever a product is received or sold. Purchases and returns are...