Cycle counting & differences between Physical & Cycle counting

Question

Accepted Answer

Cycle counting is a method of inventory auditing that involves counting a subset of items on a regular basis.

Cycle counting is an ongoing process that helps ensure inventory accuracy.
It involves counting a small portion of inventory items on a regular basis, rather than conducting a full physical inventory count.
Cycle counting is typically performed more frequently than physical counting, such as daily, weekly, or monthly.
It helps identify and correct discrepancies between the actual inventory count and the recorded count in the system.
Cycle counting can be done based on various criteria, such as ABC classification, high-value items, or items with high transaction volume.
Physical counting, on the other hand, involves counting all items in the inventory at a specific point in time.
It is usually done less frequently, such as annually or quarterly.
Physical counting provides a comprehensive view of the inventory and helps reconcile any discrepancies.
Both cycle counting and physical counting are important for maintaining accurate inventory records and preventing stockouts or overstocks.

Cycle counting &amp; differences between Physical &amp; Cycle counting