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Do you think that WalMart should use a periodic system to keep track of inventory? Would...

Do you think that WalMart should use a periodic system to keep track of inventory? Would they have to take a count of all the inventory at least once a month?

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Periodic inventory a system of inventory where purchases are recorded directly as expense in the books. At the end of accounting period inventory is physically verified by the company and cost of the remaining stock is calculated and same is credited to the expense account.

This system works fine when there is less inventory items. However, for a Company like Walt mart - The biggest company in terms of revenue in the world this system can be disastrous. Because walmart has huge inventory stocks.

Counting these inventories may take a lot of time and effords.

Hence, Perpectual inventory system is recommended for Walmart.  

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