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Kim Smith.
Kim Smith.-
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Jiya024
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dear professor,
With respect to the below paragraph am tad bit addled.
“Where the client uses a continuous inventory system, lines of inventory are counted periodically (say monthly) throughout the year so that by the end of the year all lines have been counted.”
Does this mean 1st line of inventory is calculated on 31jan, the 2nd one is calculated on 28feb and 3rd one on 31march?
OR
all lines of inventory are counted at the end of each month? cumulative counting?
https://opentuition.com/topic/continuous-perpetualinventory-count/
Also professor i read this answer on perpetual inventory count. it is hands down amazing!I think if you could just add a small example using different dates/months, it will be a great source of help for me.
Many thanks!
Kim Smith
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Your first interpretation is correct – so if there were 1,200 product lines, on average 100 different product lines would have to be counted at each month end in order to ensure that all are counted at least once a year. Of course not all product lines are the same – so if a supermarket (for example) was selling electrical appliances as well as food, drink, etc, the more valuable items might be counted at every month.
All products being counted at the same time is the meaning of a FULL count.
Jiya024
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