In a seminar, you are reviewing one of your classmates’ responses to the following question:
“What are the basic differences between periodic and perpetual inventory systems?”
Your classmate responded as follows:
“The difference between the two is that periodic is once in a while and perpetual is always in terms of when they are updated. We can only determine cost of goods sold in a periodic system once inventory has been counted.”

Required

Identify three ways to substantively improve your classmate’s response.