Which statement best describes cycle counting as a practice?

• A. It is performed only once per year.
• B. It requires a complete shutdown to count all items.
• C. It is an ongoing process that counts subsets of items and maintains accuracy.
• D. It eliminates the need for any physical counts.

Answer: (C)

Cycle counting is an ongoing process that maintains inventory accuracy by regularly counting a subset of items rather than doing a full stock count all at once. This approach spreads the workload over time, often prioritizing items by importance or turnover, and compares what is on the shelf to what the system records. When discrepancies are found, adjustments are made to keep the data reliable between any full physical counts. It doesn’t require shutting down operations, and it doesn’t eliminate the need for occasional full physical counts or audits. The other statements don’t fit because counting only once a year ignores the continuous nature of cycle counting, a shutdown isn’t necessary, and cycle counting does not completely remove the need for physical verification.