Which inventory counting approach compares the total value of inventory to the starting inventory over a specified period?

The periodic inventory counting approach is designed to assess the total value of inventory at specific intervals, typically at the end of an accounting period. This method involves taking a complete count of the inventory on hand and comparing it to the starting inventory value. By doing so, retailers can determine the amount of inventory that has been used and verify how much remains.

This approach is particularly useful for tracking changes in inventory levels over time without requiring continuous monitoring. It is often less labor-intensive than conducting perpetual counts, which require constant updates. Periodic inventory helps businesses assess their stock levels, make financial assessments, and plan for future inventory needs based on observable sales patterns.

In contrast, the physical inventory method entails a complete count of items, but it does not necessarily focus on comparing values to starting inventory; it reflects a snapshot at a specific point in time. Perpetual inventory systems, on the other hand, continuously update inventory records as transactions occur, which provides real-time data rather than periodic assessments. Package switching is unrelated to inventory counting methods altogether, as it pertains more to logistics and packaging strategies rather than inventory valuation.