Continuous inventory record allows organization to determine the level and value of inventory at any point in time.

It is time consuming and costly to operate.

It is suitable for large organizations.

It is the legal requirement for listed companies to maintain accounting records that will be able to identify organizations financial performance and position at any point in time.

Period end inventory record involves valuation of inventory outstanding at accounting period end.

It is less time consuming and cost-effective to operate as compared to continuous inventory records.

It is suitable for small and medium sized organizations (SMEs). SMEs may not have enough resources and benefits of continuous inventory monitoring may not exceed benefits.

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