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A disadvantage of the fixed period inventory system is that...?

  • it involves higher ordering costs than the fixed quantity inventory systems
  • additional inventory records are required
  • the average inventory level is decreased
  • since there is no count of inventory during the review period, a stock out is possible

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Question added by Prabin Rai , inventory officer , bijaya motor
Date Posted: 2017/05/20
Tharabai Jayaprakaash
by Tharabai Jayaprakaash , Lab Instructor , Jaya Engineering College

  • Fixed period inventory is recommended for the finished goods inventory, and WH
  • Where sales is more
  • Sales won't be updated daily
  • no on-line accuracy of stock
  • no stock will be revised

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