What is another name for the "periodic system" of inventory accounting?

• A. Weighted average system
• B. Physical inventory system
• C. Perpetual inventory system
• D. Just-in-time inventory system

Answer: (B)

Verified step by step guidance

1. Understand the concept of the 'periodic system' of inventory accounting. This system involves updating inventory records at specific intervals, typically at the end of an accounting period, rather than continuously.
2. Compare the periodic system to the 'perpetual inventory system,' which updates inventory records in real-time as transactions occur.
3. Recognize that the 'physical inventory system' is another name for the periodic system because it relies on physically counting inventory to determine quantities and costs.
4. Eliminate other options such as 'weighted average system,' which refers to a cost flow assumption method, and 'just-in-time inventory system,' which is a strategy for minimizing inventory levels.
5. Conclude that the correct answer is 'Physical inventory system,' as it aligns with the periodic system's reliance on physical counts to update inventory records.