An online business uses a periodic inventory system to track and manage the products it sells. Which benefit does the business gain by using this type of inventory system?

A periodic inventory system is not particularly responsive to demand changes since it only updates inventory levels at specific intervals. This can lead to delays in recognizing stock shortages or surpluses, making it less effective in quickly adapting to fluctuations in customer demand compared to a perpetual inventory system.

This choice accurately reflects one of the significant benefits of a periodic inventory system. It requires less investment in technology and training compared to a perpetual inventory system, making it a cost-effective option for businesses looking to manage their inventory without incurring high expenses.

A periodic inventory system does not guarantee a low risk of running out of stock. The lack of real-time inventory tracking can lead to unforeseen stockouts, particularly if demand surges unexpectedly between inventory assessments. Thus, this system can actually increase the risk of stockouts rather than mitigate it.