Define The Difference Between Cycle Counting And Physical Inventory?

1.	Define The Difference Between Cycle Counting And Physical Inventory?
Answer» Cycle counting is the PERIODIC counting of individual items throughout the course of the year to ENSURE the accuracy of item. Physical Inv. counts the entire inventory once a year Physical Inv. takes a snapshot of inv.'s on-hand QUANTITY at the beginning of the process. All adjustments are made against snapshot quantity. In cycle counting fewer items are COUNTED each DAY so less disruption to normal production or distribution In PI all items are counted once a year so a lot of disruption.

Answer»

Cycle counting is the PERIODIC counting of individual items throughout the course of the year to ENSURE the accuracy of item. Physical Inv. counts the entire inventory once a year Physical Inv. takes a snapshot of inv.'s on-hand QUANTITY at the beginning of the process. All adjustments are made against snapshot quantity.
In cycle counting fewer items are COUNTED each DAY so less disruption to normal production or distribution In PI all items are counted once a year so a lot of disruption.

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