Author Question: Cycle counting (Read 57 times)

dalyningkenk · **on:** Dec 3, 2019

Question 1

ABC analysis divides on-hand inventory into three classes, generally based upon
◦ unit price.
◦ annual dollar volume.
◦ item quality.
◦ annual demand.
◦ the number of units on hand.

Question 2

Cycle counting
◦ assumes that all inventory records must be verified with the same frequency.
◦ assumes that the most frequently used items must be counted more frequently.
◦ provides a measure of inventory turnover.
◦ provides a measure of inventory accuracy.
◦ is a process by which inventory records are verified once a year.

wshriver · **Reply #1 on:** Dec 3, 2019

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