periodic method inventory

periodic method inventory is an inventory management system that involves updating inventory records at specific intervals, rather than continuously tracking inventory in real time. Under the periodic method, businesses physically count their inventory at regular intervals (e.g., monthly, quarterly) and adjust their inventory records based on the results of this count. This system is often used by smaller businesses or those with less complex inventory needs. While the periodic method is simpler to implement, it can lead to discrepancies between actual and recorded inventory if not managed carefully.