periodic inventory systems

periodic inventory systems are a method of tracking inventory in which updates to stock levels occur at regular intervals, rather than continuously. In this system, businesses count inventory at the end of a period, such as monthly, quarterly, or yearly. The periodic inventory system is simpler and less expensive to maintain than a perpetual system but may result in less timely data about stock levels. This system is commonly used by smaller businesses or those with limited resources for real-time inventory tracking.