Periodic counting and cycle counting are two different systems for managing inve

ID: 345809 • Letter: P

Question

Periodic counting and cycle counting are two different systems for managing inventory accuracy. Which of the following statements is true?

Each time you do cycle counting, you only count a portion of the the total SKU's that you stock

Periodic counting generally occurs more frequently than cycle counting

An example of cycle counting is to count every SKU on the first day ( Jan1) of each year

Cycle counting generally counts every item in stock, whereas periodic counting generally does not

Each time you do cycle counting, you only count a portion of the the total SKU's that you stock

B. C.

Periodic counting generally occurs more frequently than cycle counting

An example of cycle counting is to count every SKU on the first day ( Jan1) of each year

Cycle counting generally counts every item in stock, whereas periodic counting generally does not

Option A is correct which says "each time you do cycle counting, you only count a portion of the total SKU's that you stole"

Explanation :

Cycle counting is counting a specific portion of stock on a specific date for auditing purposes.

Periodic count is counting on a period's end physically.

So, of all options option A is correct.

Periodic counting occurs less frequently than cycle counting.

Not every SKU'S is counted in cycle counting.

Cycle counting doesn't count every item in stock .

Hence option C, D, and E are incorrect

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