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Cycle Counting

Even though a company may have an active campaign to record inventory accuracy, those records need to be verified through a continuing audit. Those audits are known as performing a cycle counting of work-in-progress, piece part inventory and finished goods.

Explain how cycle counting audits improve inventory accuracy.

Explain how items need to counted on different time schedules.

Please site at least 1 reference.

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Explain how cycle counting audits improve inventory accuracy.

Cycle counting audits can greatly improve inventory accuracy mainly because it involves more frequent counting. Cycle counting means physically conducting a count of the current inventory, in small quantities, multiple times a year, in order to ensure the normal annual inventory count is accurate. When companies use cycle counting, they are doing a double check on their inventory. If errors or inaccuracies are found, then it is necessary to review the inventory to see what caused the discrepancies such as was a product sent that should not have been sent or maybe a product broke and wasn't accounted for. There are all types of reasons that could throw off an inventory count. "Cycle Counting involves counting part of your inventory every day ...

Solution Summary

This article discusses the advantages of using the cycle counting process. It also defines what cycle counting is and describes how companies may utilize it.