Question: Your classmate does not understand the difference between the perpetual and periodic inventory systems. The same cost methods are used in both systems, he says,

Your classmate does not understand the difference between the perpetual and periodic inventory systems. "The same cost methods are used in both systems," he says, "and a physical inventory count is required in both systems. So what's the difference?" Explain to your confused classmate how the perpetual and periodic inventory systems differ.

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