What is the purpose of cycle counting?

• A. To verify inventory accuracy routinely for high-value items without full physical counts.
• B. To count every item in the warehouse daily.
• C. To replace annual external audits.
• D. To count only expired items.

Answer: (D)

Cycle counting is a method for keeping inventory accurate by regularly counting a subset of items on a rotating schedule, rather than doing one full warehouse count all at once. This approach focuses on items that matter most—usually high-value, high-risk, or high-turnover items—so discrepancies can be found and corrected quickly without interrupting operations with a full physical count.

That’s why the best choice describes verifying inventory accuracy routinely for high-value items without performing a complete full-count. It captures the ongoing, selective nature of cycle counting and its goal of maintaining accuracy efficiently.

Counting every item daily describes a full physical count, which is not how cycle counting works. Replacing annual external audits isn’t the purpose of cycle counting, which complements audits rather than replaces them. Counting only expired items misses the broader goal of verifying overall inventory accuracy across the stock.