Inventory Systems (Grade 10 NSC Matric Accounting): Flashcards
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Practise the cards
10 cards from this deck
Inventory (or trading stock)
Inventory (or trading stock)
Products a business has in stock
Two main inventory systems
Two main inventory systems
Continuous and periodic
3 factors determining inventory system choice
3 factors determining inventory system choice
Nature of business, type of goods, level of computerisation
Continuous inventory system
Continuous inventory system
Maintains up-to-date records of stock levels
Goods suited to continuous system
Goods suited to continuous system
Easily identifiable, measurable, and easy to value
Technology used in continuous inventory system
Technology used in continuous inventory system
Scanners and bar codes
Periodic inventory system
Periodic inventory system
Counts inventory at specific intervals (e.g., monthly)
Goods suited to periodic system
Goods suited to periodic system
Not easily identifiable, measurable, or valued individually
Example of business using periodic system
Example of business using periodic system
Café (can't track every grain of coffee or ml of milk)
Examples of continuous system businesses
Examples of continuous system businesses
Clothing retailers, electronic stores, bookshops, pharmacies