periodic inventory method

periodic inventory method definition - business

periodic inventory method

The calculation of inventories by counting physical inventory at the end of each accounting period rather than updating inventory continuously. Inventory on the balance sheet is determined by the physical count and the method used for valuing inventory. This method is used mostly by small businesses. Compare perpetual inventory method.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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