What is the purpose of a cycle count?

• A. To know the exact count of all assets in the inventory.
• B. To verify asset condition.
• C. To determine depreciation.
• D. To spot discrepancies on a subset of items and maintain accuracy between physical counts and records.

Answer: (D)

Cycle counting aims to keep inventory records accurate by regularly counting a representative subset of items and comparing the physical counts to the recorded amounts. This approach lets you detect and correct discrepancies early without shutting down operations for a full inventory. It also lets you prioritize areas that are more prone to errors, such as high-value or fast-moving stock, so the accuracy of the overall records stays reliable over time. The other options miss the main purpose: a full, exact count of every asset is a complete physical inventory, not a cycle count; asset condition isn’t what cycle counts measure; and depreciation is a financial calculation, not about verifying physical quantities or record accuracy.