How does a Periodic System simplify stocktaking?

A Periodic System simplifies stocktaking primarily because it allows for inventory counts to be conducted at specific intervals rather than continuously tracking inventory levels. This system involves counting inventory at the end of a reporting period and does not require constant updates for every transaction. Instead of tracking each sale or addition to inventory in real-time, businesses conduct a comprehensive count at intervals—such as monthly, quarterly, or annually—thus minimizing the operational burden of ongoing monitoring.

This approach presents advantages in that it reduces the complexity of daily record-keeping related to inventory. Furthermore, because the actual count takes place at regular intervals, companies can choose times that are less disruptive to business operations, enabling a structured and straightforward inventory assessment process.

While it does involve some level of cross-checking during the stock count to verify accuracy, the simplicity comes from the ability to handle stock counts less frequently compared to a perpetual system. Therefore, while option B states that it requires no cross-checking during stock counts, it's essential to recognize that some level of checking is still needed to ensure this system's effectiveness, but overall it remains simpler compared to continuous systems.

The other options do not accurately reflect the workings of a Periodic System. It does not inherently allow for more frequent counts, as the