ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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once or twice a week
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twice a month
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once or twice a year
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every 5 years
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Detailed explanation-1: -Businesses usually perform their annual physical inventory count before compiling their annual financial reports. Performing inventory only once a year does not always yield the most accurate results. The best inventory count practice depends on your business type and goals.
Detailed explanation-2: -How often you count is based on company goals, but you should to it at least once per year for each area. To ensure storage locations are accurate. It can also help you find any patterns of stock discrepancy based on site.
Detailed explanation-3: -Taking Year-End Physical Inventory Can Help Ensure Accuracy Even if you use inventory management software or other systems to track inventory throughout the year, only an actual count can reveal what you have on hand and make sure it matches what’s in your system.
Detailed explanation-4: -Physical inventory is usually taken at the end of the year. This is done to manually update records after a specific inventory accounting period to account for any discrepancies between the inventory on hand and your POS system.