Question

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?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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.  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Which primary goal of the health system do you think should be the priority in...
1. Which primary goal of the health system do you think should be the priority in the Philippines? Why? 2. Do you think that the directions of the Philippines Health Sector are on the right track? Do you have any other recommendations? 3. Do you think that the Philippines have achieved the goals and functions of a Health System? 4. What suggestions will you come up with to control and prevent the spread of the COVID-19 virus in the Philippine...
(a). A company can choose to use a variety of inventory valuation methods under GAAP. Would...
(a). A company can choose to use a variety of inventory valuation methods under GAAP. Would the use of one certain method require more testing of controls than another method? Why or why not? (b) Why is a physical count taken under both a perpetual and periodic inventory system? (c) Do you think the same level of controls are needed for period and perpetual systems?
9) In a periodic inventory system using First In, First Out (FIFO) A) The ending inventory...
9) In a periodic inventory system using First In, First Out (FIFO) A) The ending inventory will be made up of the most recently bought items B) The ending inventory will be made up of the earliest bought items C) The ending inventory will be made up of the average cost of the items D) The ending inventory will be made up of only the beginning items 10) In a periodic inventory system using Last In, First Out (LIFO) A)...
1. Which of the following would most likely use a periodic inventory system? a) heavy metal...
1. Which of the following would most likely use a periodic inventory system? a) heavy metal distributor b) computer dealership c) local handcrafted furniture store d) car dealership 2. If prices were rising and a Canadian company wanted to report a smaller amount of profit for tax purposes, they should use the weighted-average cost formula. a) True b) False 3.Once the manufacturing process is complete, the product is transferred from the Work-in-Process account to Raw Materials account. a) True b)...
If you want to keep track of your income, what data type of variable would you...
If you want to keep track of your income, what data type of variable would you use and why?
Assume Skysong, Inc. uses the periodic inventory system and has a beginning inventory balance of $5700,...
Assume Skysong, Inc. uses the periodic inventory system and has a beginning inventory balance of $5700, purchases of $76000, and sales of $120000. Skysong closes its records once a year on December 31. In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was equal to $5700. more than $5700. less than $5700. indeterminate.
Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory...
Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021: Cost Retail Beginning inventory $ 29,000 $ 46,000 Net purchases 14,500 ? Net markups 10,700 Net markdowns 2,700 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $24,998.00. If the company had used the LIFO cost...
Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory...
Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021: Cost Retail Beginning inventory $ 21,400 $ 38,600 Net purchases 10,700 ? Net markups 8,500 Net markdowns 2,500 Net sales ? The company used the average cost flow method and estimated inventory at the end of September to be $17,120.00. If the company had used the LIFO cost...
Do you think companies should or should not use EI test ?
Do you think companies should or should not use EI test ?
What were the reasons for Walmart shifting its focus to Africa? 2. Do you think Africa...
What were the reasons for Walmart shifting its focus to Africa? 2. Do you think Africa offers good growth prospects for WalMart in the future? 3. Why did Wal-Mart face opposition from trade unions and other government departments over its acquisition of Massmart? Do you think the opposition coalition had a valid point in opposing the deal? Justify your answer. 4. What strategies should Wal-Mart follow to succeed in a market like Africa with its low income levels and high...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT