Inventory Recording Systems: Perpetual vs Periodic

The video tutorial discusses two inventory systems: perpetual and periodic. The perpetual system updates accounting records continuously, suitable for businesses with high-value, low-turnover goods like car dealerships. In contrast, the periodic system updates records at the end of a period, ideal for high-volume retailers. The choice of system often depends on the business type and industry.

What challenges might arise from using a perpetual inventory system in a high-volume retail environment?

Why might a big box retail company prefer a periodic inventory system?