Accounting - Periodic and Perpetual method

GeekInterview.com > Interview Questions > Accounting

Go To First | Previous Question | Next Question

Accounting | Question 119 of 150

Periodic and Perpetual method

What is the difference between the periodic and perpetual method, How will you record it your book?

Total Answers and Comments: 1

Last Update: November 28, 2008 Asked by: zelle

Sponsored Links

Best Rated Answer

—

No best answer available. Please pick the good answer available or submit your answer.

November 27, 2008 14:18:08

ajspalia

Member Since: November 2008 Contribution: 4

RE: Periodic and Perpetual method

I am not sure in what context the user is asking but periodic and perpetual are two methods used for inventory control. Periodic inventory is undertaken more commonly to calculate the value of actual inventory of goods for the purpose of closing financial period whereas perpetual inventory is mainly used as an inventroy control technique. For example we have 30 groups of materials lying in stock in a storage location. Every month end,as per our convinience, we take 2-3 groups and cary out thier physical inventory. Hence the main purpose of doing perpetual inventory is to keep a regular check on stock of inventory and make adjustments if a discrepency is found between physical and book stock.
As a matter of fact perpetual inventory may not cover hundred percent items in a fiscal year as more stress may be laid on 'A' and 'B' category items whereas a periodic inventory is supposed to cover all stock of materials in a profit centre.
A lot can be written about the topic but I feen this should be enough for now.

Anoopjeet

Is this answer useful? Yes | No

What is Common Data Modeling Method

Common Data Modeling is one of the core considerations when setting up a business data warehouse. Any serious company wanting to have a data warehouse will have to be first serious about data models. Building a data model takes time and it is not unusual for companies to spend two to five years just

The Interview Snafu

How to turn someone else’s mistake to your advantage Your dream job is about to become reality. A recruiter gave you the heads up about the perfect position at Humungous Conglomerate, Inc. You went through five interviews as well as a battery of psychological tests mandated by their HR de

Winning a Job Interview with a Winning Resume

Does your resume unlock your potential, take your skills to the highest level and win you the interview and the job you want now? The job market today is highly competitive and even if you think you have what it takes to get an interview you won’t get over the line without a polished, prof

JavaScript Window Object Open Method Part 2

JavaScript Window Object Open Method Part 2 In this JavaScript tutorial you will learn about JavaScript Window Object Open Method features of window object open method scrollbars status titlebar toolbar top width innerHeight innerWidth outerHeight outerWidth and hotkeys mosgoogle center scrollbars S

JavaScript Window Object Open Method

JavaScript Window Object Open Method In this JavaScript tutorial you will learn about JavaScript Window Object Open Method features of window object open method channelmode directories dependent fullscreen screenX screenY height left location menubar resizable alwaysLowered alwaysRaised mosgoogle ce

Importance of Proper English during Job Interview

Importance of Proper English during Job Interview Your job interview is crucially important and it will determine whether or not you will get the job Depending on the type of job you re going for it is very important for you to use proper English In most cases jobs which offer higher salaries will h

HR Interview - HR Interview Mistakes You Will Want To Avoid

HR Interview Mistakes You Will Want To Avoid The job interview can be a stressful process This is especially true for those who are going after a competitive position Your nonverbal communication combined with the answers you give during the interview will determine if you are hired mosgoogle While

HR Interview - Behavioral HR Interviews

Behavioral HR Interviews As the name implies a behavioral interview is an interview that is held by a human resources department to determine if an applicant has the behaviors that are appropriate for a job The company must know how an applicant will behave in a certain situations mosgoogle The logi

HR Interview - How To Prepare For Your HR Interview

How To Prepare For Your HR Interview Before you begin thinking about how you are going to dress for the interview it is important to do your research first You should learn everything you can about the company you wish to work for When you have detailed information about your employer you will conve

HR Interview - Telephone Interview Etiquette

Telephone Interview Etiquette When you conduct a telephone interview for a job it is important to show the proper etiquette Not only is it important it is critical is you wish to be hired by the company There are a number of things you will want to do and other things should never be done mosgoogle