Perpetual versus Periodic Inventory Systems

Graham Company is trying to select an inventory system. Below are several statements that pertain to inventory systems.

Required:

Select the inventory system, perpetual or periodic, that is best represented by each statement. If the statement applies to both systems, select "both".

1. Cost of goods sold is only determined at the end of the period after a physical count of inventory.	periodicperpetualboth perpetual and periodic
2. A physical count of inventory is performed.	periodicperpetualboth perpetual and periodic
3. Purchases of inventory are recorded in a Purchases account.	periodicperpetualboth perpetual and periodic
4. Cost of goods sold is determined continually during the period as sales are made.	periodicperpetualboth perpetual and periodic
5. Greater control over inventory is possible.	periodicperpetualboth perpetual and periodic
6. This inventory system is relatively inexpensive to operate.	periodicperpetualboth perpetual and periodic