You have a high value item that you want to audit on an unscheduled basis to deter pilfering. Which method would you use to do this?

Question

Options

• AABC Count
• BPhysical Inventory Count
• CAutomated Cycle Count
• DManual Cycle Count
• EBlind Inventory Count

• B
  3% (1)
• C
  8% (3)
• D
  85% (33)
• E
  5% (2)

Explanation

Manual Cycle Count (D) is correct because it allows management to personally initiate an unannounced count of specific high-value items at any time, without following a system-generated schedule - the randomness is precisely what deters theft, since employees can't predict when items will be checked.

Why the distractors are wrong:

• A (ABC Count): ABC classifies inventory by value and sets counting frequencies, but it still follows a systematic, predictable schedule - not unscheduled.
• B (Physical Inventory Count): Counts all inventory at once; it's typically a major scheduled event (e.g., year-end), too broad and infrequent to serve as a targeted deterrent.
• C (Automated Cycle Count): The system drives the schedule automatically, making counts predictable and defeating the deterrence purpose.
• E (Blind Inventory Count): Describes how a count is conducted (counters don't see expected quantities beforehand, reducing bias), not when or why - it has nothing to do with unscheduled auditing.

Memory tip: Think "Manual = Manager's discretion" - a manager can walk over right now and count those expensive items without asking a computer for permission, keeping employees guessing.

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