A running count that records how much inventory should be on hand is referred to:
Click on the arrows to vote for the correct answer
A. B. C. D.B
The correct answer to this question is B. Perpetual inventory.
Perpetual inventory is a system of tracking inventory levels in real-time, as goods are received and sold. In this system, every time a sale is made, the inventory levels are updated, so the system always has an accurate record of how much inventory should be on hand at any given time.
One way of maintaining perpetual inventory is to use barcode or RFID (radio-frequency identification) technology to scan items as they are received and sold, and automatically update inventory records in real-time. Another way is to use manual records, such as spreadsheets or inventory cards, to track inventory levels, and update the records as items are received and sold.
A running count is a key component of the perpetual inventory system. It refers to a record of how much inventory should be on hand at any given time, based on the inventory levels recorded in the system. This record is typically kept in a separate ledger or spreadsheet, and is updated every time a new shipment is received, or a sale is made. By comparing the running count to the actual inventory levels, businesses can identify discrepancies or losses, and take action to prevent fraud or theft.
Altered inventory, shrinking inventory, and fictitious inventory are all examples of fraudulent inventory schemes that can occur when proper inventory controls are not in place. Altered inventory involves changing the physical characteristics of inventory items to conceal theft or damage, while shrinking inventory refers to the loss of inventory due to theft, damage, or other causes. Fictitious inventory is the creation of fake inventory records to conceal theft or embezzlement. By using a perpetual inventory system with a running count, businesses can more easily detect and prevent these types of fraudulent activities.