Cycle Counting
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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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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.
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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 ...
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