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beks73 [17]
3 years ago
13

A disadvantage of the fixed-period inventory system is that:

Business
1 answer:
Andrei [34K]3 years ago
4 0

Answer:

The correct answer is letter "B": since there is no count of inventory during the review period, a stockout is possible.

Explanation:

The fixed-period inventory system, also known as a periodic inventory system, only updates the organization’s inventory balance when an actual physical count of the inventory is necessary. Most companies only carry out a physical inventory count once every quarter or year, being this the reason why this system is called "fixed-period". However, this could lead to a company stockout at an unexpected period when the count was not carried out yet.

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