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kobusy [5.1K]
3 years ago
9

When identical units of an item are purchased at different costs,

Business
1 answer:
Masja [62]3 years ago
7 0
When identical units of an item are purchased at different costs: <span>an inventory cost flow method must be used under both a perpetual and a periodic inventory system.

A perpetual inventory system will update your inventory on hand after each sale or purchase of inventory is made.  A periodic inventory system is updated periodically, meaning, a company will give a time period they would like their sales and purchases to update in and the system will perform that. Both systems are great for a business but it's their option of how they are generated. 
</span>
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