{"id":2798,"date":"2019-11-25T09:31:29","date_gmt":"2019-11-25T09:31:29","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2798"},"modified":"2019-11-25T09:31:29","modified_gmt":"2019-11-25T09:31:29","slug":"perpetual-inventory-system","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/perpetual-inventory-system\/","title":{"rendered":"PERPETUAL INVENTORY SYSTEM"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#MEANING\" title=\"MEANING\">MEANING<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#Perpetual_Inventory_System_refers_to_a_system_of_maintaining_such_records_as_will_reflect_the_receipts_issues_and_balance_of_all_items_of_materials_in_store_all_the_times_It_is_a_material_control_technique\" title=\"Perpetual Inventory System refers to a system of maintaining such records as will reflect the receipts, issues and balance of all items of materials in store all the times. It is a material control technique.\">Perpetual Inventory System refers to a system of maintaining such records as will reflect the receipts, issues and balance of all items of materials in store all the times. It is a material control technique.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#FEATURES_OF_PERPETUAL_INVENTORY_SYSTEM\" title=\"FEATURES OF PERPETUAL INVENTORY SYSTEM\">FEATURES OF PERPETUAL INVENTORY SYSTEM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#RECORDS_KEPT_UNDER_PERPETUAL_INVENTORY_SYSTEM\" title=\"RECORDS KEPT UNDER PERPETUAL INVENTORY SYSTEM\">RECORDS KEPT UNDER PERPETUAL INVENTORY SYSTEM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#ADVANTAGES_OF_PERPETUAL_INVENTORY_SYSTEM\" title=\"ADVANTAGES OF PERPETUAL INVENTORY SYSTEM\">ADVANTAGES OF PERPETUAL INVENTORY SYSTEM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/#DISADVANTAGES_LIMITATIONS_OF_PERPETUAL_INVENTORY_SYSTEM\" title=\"DISADVANTAGES\/\nLIMITATIONS OF PERPETUAL INVENTORY SYSTEM\">DISADVANTAGES\/\nLIMITATIONS OF PERPETUAL INVENTORY SYSTEM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"meaning\"><span class=\"ez-toc-section\" id=\"MEANING\"><\/span>MEANING<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"perpetual-inventory-system-refers-to-a-system-of-maintaining-such-records-as-will-reflect-the-receipts-issues-and-balance-of-all-items-of-materials-in-store-all-the-times-it-is-a-material-control-technique\"><span class=\"ez-toc-section\" id=\"Perpetual_Inventory_System_refers_to_a_system_of_maintaining_such_records_as_will_reflect_the_receipts_issues_and_balance_of_all_items_of_materials_in_store_all_the_times_It_is_a_material_control_technique\"><\/span>Perpetual Inventory System refers to a system of maintaining such records as will reflect the receipts, issues and balance of all items of materials in store all the times. It is a <a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"material control technique. (opens in a new tab)\">material control technique.<\/a><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>ACCORDING TO ICMA (Institute of Cost and Management Accountants), UK<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cPerpetual Inventory System is a system of records maintained by\nthe controlling department, which reflects the physical movement of stock and\ntheir current balance.\u201d<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Under this system, an entity continually updates its inventory\nrecords to account for additions to and subtractions from inventory for such\nactivities as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Received\ninventory items<\/li><li>Goods\nsold from stock<\/li><li>Items\nmoved from one location to another<\/li><li>Items\npicked from inventory for use in the production process<\/li><li>Items\nscrapped<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The widespread use of computers after 1970\u2019s has increased this\nsystem popularity because businesses were able to more easily keep track of\ninventory as it sold. The barcodes, radiofrequency identification scanners and\npoint of sale systems provided support for this system by quickly inputting\ninventory information as customers purchase items.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The formula for perpetual inventory system is as follows:<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>Beginning Inventory+ Reciepts- Shipments= Ending\/ Closing Inventory<\/strong><\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"features-of-perpetual-inventory-system\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_PERPETUAL_INVENTORY_SYSTEM\"><\/span>FEATURES OF PERPETUAL INVENTORY SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">The following are the features of perpetual inventory system:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>This\nsystem traces every single movement of inventory.<\/li><li>It\nis prepared on the basis of book records.<\/li><li>The\nrecords maintained in this are updated continuously.<\/li><li>It\ntells the information about inventory and cost of sales.<\/li><li>It\nassists in inventory control.<\/li><li>This&nbsp; system has no impact on the business\noperation.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"records-kept-under-perpetual-inventory-system\"><span class=\"ez-toc-section\" id=\"RECORDS_KEPT_UNDER_PERPETUAL_INVENTORY_SYSTEM\"><\/span>RECORDS KEPT UNDER PERPETUAL INVENTORY SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide11-2.jpg\" alt=\"RECORDS KEPT UNDER PERPETUAL INVENTORY SYSTEM\" class=\"wp-image-2809\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide11-2.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide11-2-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide11-2-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>1.BIN CARD<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">It is maintained in the stores department and shows the\nquantities of materials received, issued and balance in hand after each receipt\nand issue. It is also known as stock card or bin tag. It is featured as\nfollows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\nis the statement if all the receipts and issues of material from stock from the\nstores department.<\/li><li>It\nis maintained by the store-in-charge or store keeper.<\/li><li>It\nis kept inside the store department.<\/li><li>It\nrecords only quantity of materials not the value.<\/li><li>It\nis updated when receipts and issues are made in the store department.<\/li><li>Transactions\nare updated individually because at every point of time, store keeper needs to\nbe aware of the actual position of the stock.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The format of Bin Card is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"286\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/bin-card.jpg\" alt=\"bin card\" class=\"wp-image-2800\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/bin-card.jpg 600w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/bin-card-300x143.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">The following are the <strong><em>advantages of the Bin Card:<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bin\nCard is maintained for each item in the stock, in this way it facilitates\nindividual record keeping.<\/li><li>It\nalso provides information about the minimum level or maximum level of stock.<\/li><li>Bin\nCard is flexible to use as its format is not standard or rigidly specified.<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-center has-pale-cyan-blue-background-color has-background has-medium-font-size\"><strong>2.STORES LEDGER<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">It is maintained by costing office and deals with the quantities\nand values of materials received, issued and balance in hand. It is an\nassemblage of cards or sheets, which are maintained to keep a record of\nquantity and cost of material received, transferred and remained in stock. It\ncomprises if an account for each item in the stock room and keeps the record\nof:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Quantity<\/li><li>Type<\/li><li>Rate<\/li><li>Amount<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">It is featured as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\nis subsidiary ledger to the cost ledger.<\/li><li>It\nis an accounting record.<\/li><li>It\nis maintained by cost accounting department.<\/li><li>It\nis kept outside the stock room.<\/li><li>It\ncontains both quantitative and monetary details.<\/li><li>It\nrecords inter-departmental transfer.<\/li><li>The\nsummary of transactions is recorded in this.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The <strong>format of stores ledger<\/strong> is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"625\" height=\"407\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/clip_image00243.jpg\" alt=\"stores ledger\" class=\"wp-image-2802\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/clip_image00243.jpg 625w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/clip_image00243-300x195.jpg 300w\" sizes=\"(max-width: 625px) 100vw, 625px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">The <em><strong>advantages of stores ledger<\/strong><\/em> is as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\nworks greatly as internal control system.<\/li><li>It\nmay be made in manual or in computerized form.<\/li><li>It\ntells the quantity as well as value of the materials.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">However, stores ledger suffers from some <em><strong>drawbacks <\/strong><\/em>which are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\ncontains the summary of the records not details.<\/li><li>The\ntransactions are not updated individually. <\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"advantages-of-perpetual-inventory-system\"><span class=\"ez-toc-section\" id=\"ADVANTAGES_OF_PERPETUAL_INVENTORY_SYSTEM\"><\/span>ADVANTAGES OF PERPETUAL INVENTORY SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">The following are the advantages of perpetual inventory system:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide4-2.jpg\" alt=\"advantages of perpetual inventory system\" class=\"wp-image-2804\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide4-2.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide4-2-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide4-2-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>QUICK VALUE OF CLOSING STOCK: <\/em><\/strong>On account of continuous stock taking, the value of closing stock can be known at any time during the year. It greatly facilitates the preparation of profit and loss account and balance sheet at the end of the financial period.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>LESSER INVESTMENT IN MATERIALS: <\/em><\/strong>By introducing the perpetual inventory system, a regular check on receipt and issue of materials and stores is undertaken. This considerably reduces the investment in materials and storage expenses are also minimized.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>HELPFUL IN FORMULATING PROPER PURCHASE POLICIES: <\/em><\/strong>A storekeeper can easily know the time when quantity of materials will be required by each department of the factory. All this information is very useful in formulating proper purchase policies.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>IMMEDIATE DETECTION OF THEFT AND LEAKAGES:<\/em><\/strong> with the help of a properly planned system of perpetual inventory control, wastages, leakages and thefts of materials are at once brought to light and causes for such discrepancies can be known without delay.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>ADEQUACY OF WORKING CAPITAL: <\/em><\/strong>The system ensures an effective control over the storing, issuing and using of materials. This leads to avoidance of unnecessary locking up of capital in the stock. This makes available adequate supply of working capital which can be applied in other profitable spheres of the concern.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>BENEFICIAL IN ASCERTAINING EFFICIENCY IN STORES ORGANISATION:<\/em><\/strong> Perpetual inventory control system acts as an important instrument to ascertain efficiency and working of stores in a production undertaking as it ensures continuous check on the working and operations of the stores.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>OTHER ADVANTAGES: <\/em><\/strong>The other advantages of perpetual inventory system are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\nensures timely replenishment of stock.<\/li><li>The\nrecords maintained are up-to-date.<\/li><li>The\nfixing percentage of normal loss can be ensured by putting strict control over\nwastages and losses.<\/li><li>Business\noperations need not to be closed on account of yearly stock taking.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"disadvantages-limitations-of-perpetual-inventory-system\"><span class=\"ez-toc-section\" id=\"DISADVANTAGES_LIMITATIONS_OF_PERPETUAL_INVENTORY_SYSTEM\"><\/span>DISADVANTAGES\/\nLIMITATIONS OF PERPETUAL INVENTORY SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Despite so many advantages, this system also suffers from serious limitations, which are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide8-2.jpg\" alt=\"disadvantages of perpetual inventory system\" class=\"wp-image-2806\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide8-2.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide8-2-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide8-2-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>HIGHER COST INVESTMENT: <\/em><\/strong>One disadvantage of perpetual inventory system involves the setup cost. Most systems require the purchase of new equipment and inventory software. This equipment includes point of sale scanners which read the bar code of each item. Scanners are also required when items are received into inventory. Perpetual inventory systems also add to labor costs since all the inventory must be entered into the system.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>TRAINING ON EQUIPMENT: <\/em><\/strong>Another disadvantage to implementing a perpetual inventory system involves the increased level of training required. Employees need to know how to operate the various scanning equipment. Accounting personnel need training to navigate the inventory system.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>FALSE RELIABILITY: <\/em><\/strong>Perpetual inventory systems can be misleading when reviewing inventory levels. Employees can make mistakes entering quantities or scanning the wrong inventory item. Shoplifters may steal merchandise.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>INCREASED MONITORING: <\/em><\/strong>The need for increased monitoring because of employee errors or customer theft requires and additional financial investment. Security monitors typically need to be installed and some companies hire security personnel.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\">Material control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\">Perpetual inventory system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/pricing-of-materials\/\">Pricing of materials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/bin-card\/\">Bin Card<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/store-ledger\/\">Stores Ledger<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/overhead\/\">Overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-idle-time\/\">Idle time<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/system-of-wage-payment-in-cost-accounting\/\">System of wage payment in cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-time-rate-system-and-piece-rate-system\/\">Time rate vs piece rate wage system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-centre\/\">Cost Center<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/labor-turnover\/\">Labour Turnover<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Difference between management accounting and cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\">Allocation and apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-allocation-and-apportionment-of-overheads\/\">Allocation vs Apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/absorption-of-overheads\/\">Absorption of overheads<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"Difference between Financial Accounting Management Accounting and Cost accounting\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>PERPETUAL INVENTORY SYSTEM<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>MEANING Perpetual Inventory System refers to a system of maintaining such records as will reflect the receipts, issues and balance of all items of materials in store all the times. It is a material control technique. ACCORDING TO ICMA (Institute of Cost and Management Accountants), UK \u201cPerpetual Inventory System is a system of records maintained&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;PERPETUAL INVENTORY SYSTEM&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2812,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[187],"tags":[194,195,196,197],"class_list":["post-2798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-accounting","tag-advantages-of-perpetual-inventory-system","tag-disadvantages-limitations-of-perpetual-inventory-system","tag-features-of-perpetual-inventory-system","tag-records-kept-under-perpetual-inventory-system"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2798"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2798"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2812"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}