In a cycle counting system:
A) all items are counted each month
B) item counts are determined by their ABC classification
C) the purpose is to correct inventory imbalances
D) count the A items first, then B's then C's
E) counts are done at the end of the business year

Question

Quizplus · Accepted Answer

In a cycle counting system, item counts are typically determined by their ABC classification. This means that items with a higher value or greater impact on operations will be counted more frequently than those with lower value/impact. The purpose of cycle counting is generally to maintain accurate inventory records and address any imbalances or discrepancies that may be identified through the counting process. The counts are typically scheduled throughout the year, rather than just at the end of the business year.

In a Cycle Counting System