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There are two principal types of inventory systems, the perpetual system and the periodic system. The perpetual inventory system records are kept perpetually up-to-date on inventory and the cost of goods sold (Meigs & Williams & Haka & Bettner 1999: 199). On the contrary, the periodic inventory system takes no effort on keep up-to-date records of either the inventory or the cost of goods sold. Instead, inventory amounts are determined only periodically usually at the end of each year (Meigs & Williams & Haka & Bettner 1999: 202).
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