ECONOMICS

Detailed explanation-1: -Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.

Detailed explanation-2: -The periodic inventory system uses an occasional physical count to measure the level of inventory and the cost of goods sold. The perpetual system keeps track of inventory balances continuously, with updates made automatically whenever a product is received or sold.

Detailed explanation-3: -Inventory costing, also called inventory cost accounting, is when companies assign costs to products. These costs also include incidental fees such as storage, administration and market fluctuation.

Detailed explanation-4: -Periodic inventory counts may be executed monthly, quarterly, or annually, rather than regularly or after each sale. Small businesses with few employees and companies that sell low volumes often use the periodic inventory system. This method of accounting is often easier and more cost-effective to implement.