Which practice helps maintain inventory accuracy between full counts?

• A. Annual full physical count only.
• B. Conduct regular cycle counts to verify stock accuracy and reconcile discrepancies.
• C. No checks; rely on system alone.
• D. Only count items near expiry.

Answer: (B)

Regular cycle counts test a subset of inventory on a rotating schedule, comparing the physical stock to what the system shows and recording discrepancies for correction. This keeps the inventory ledger aligned with reality between the major full counts. By repeatedly catching and fixing mismatches—whether due to data entry error, misplacement, or shrinkage—the organization maintains accuracy continuously and reduces the risk of large variances at period end. An annual full physical count, while important, leaves a long gap during which errors can accumulate. Relying solely on the system without checks invites mismatches, and counting only items near expiry ignores many other items that can drift out of sync. Therefore, cycle counts are the practice that sustains accuracy between full counts.