periodic inventory method

periodic inventory method is a system used by businesses to track inventory levels at regular intervals, usually at the end of a specific period, such as monthly or yearly. Under this method, businesses do not keep continuous records of inventory transactions but instead perform a physical count of inventory at the end of each period. The periodic inventory method is commonly used by small businesses and those with a low volume of inventory. It is simpler to maintain than perpetual inventory systems but may result in less timely tracking of inventory levels.