O'Reilly logo

Business Analysis with Microsoft® Excel, Second Edition by Conrad Carlberg

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Using Perpetual and Periodic Inventory Systems

As mentioned at the beginning of this chapter, businesses that deal in goods that carry a high value usually have an easier time tracking their inventories. A boat dealer, for example, tends to have fewer units in stock than does an office supply store. Other things being equal, it is easier for the boat dealer to do a physical count of the number of boats in the inventory than for the office supplier to count the number of reams of photocopy paper in stock.

The boat dealer can determine the cost of goods sold and the value of the ending inventory on a daily basis. It is simply a matter of counting the number of boats sold, shown on the sales receipts, and multiplying that number by the cost of each ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required