Among the Advantages of Cycle Counting Is That It

question 184

Multiple Choice

Among the advantages of cycle counting is that it:

• A) makes the annual physical inventory more acceptable to management.
• B) does not require the detailed records necessary when annual physical inventory is used.
• C) does not require highly trained people.
• D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
• E) does not need to be performed for less expensive items.

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Definitions:

Considered

Thought about or taken into account when making a decision or judgment.

Perfection

In legal terms, the act of completing all required steps to secure a legal right or interest, making it enforceable against third parties.

Legal Process

The procedure of pursuing formal legal action through courts, including all judicial steps from initiation to resolution.

Secured Obligation

A debt or other type of financial obligation that is backed by collateral to reduce the risk of non-payment.