the cost of goods sold equation assumes that all inventory not on hand at the end of the period was sold and does not account for damaged or stolen merchandise. this is a disadvantage in which type of inventory system?

Periodic inventory is an inventory method in which updates are made on a regular basis. This is in contrast to perpetual inventory systems, where changes are done as needed. A periodic inventory system makes no effort to preserve accurate records of inventory or cost of products sold.
A periodic inventory system is a sort of valuation of inventory where the inventory account is refreshed once every accounting period as opposed to after each sale and purchase. The approach allows a corporation to track its starting and ending inventory within an accounting month.
Accounting for initial inventory and all purchases made throughout the time as credits are two examples of periodic systems.

Thus this is the meaning of periodic inventory system.

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