Which benefit is associated with a periodic review inventory system?

In a periodic review inventory system, the inventory levels are reviewed at regular intervals, which allows businesses to assess their stock status and decide on replenishment needs at predetermined times. This structured approach leads to lower administrative costs because it allows for streamlined operations. Instead of continuously monitoring each item on a daily basis, the periodic review can consolidate the review and ordering process into scheduled intervals. This efficiency reduces the workload on staff responsible for inventory management, lowering the overall costs related to administrative tasks, such as tracking and ordering inventory.

Additionally, the system allows for bulk ordering decisions, which can lead to cost savings and reduce the frequency of orders, further minimizing administrative expenses. The focus on reviewing stock periodically also frees up resources, making it easier to manage inventory without the need for constant oversight.