Among the advantages of cycle counting is that it:
A) makes the annual physical inventory more acceptable to management.
B) does not require the detailed records necessary when annual physical inventory is used.
C) does not require highly trained people.
D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
E) does not need to be performed for less expensive items.

Question

Quizplus · Accepted Answer

Cycle counting allows for more frequent and targeted counts, which means errors can be identified and corrected more quickly than waiting for an annual physical inventory. This can help to prevent inventory discrepancies from building up and becoming larger problems.

Among the Advantages of Cycle Counting Is That It