What is the frequency of a Cyclic Inventory?

Cyclic inventory refers to a systematic and regular approach to counting and managing inventory levels in a business. The frequency of a cyclic inventory is designed to maintain optimal stock levels while ensuring accurate tracking of inventory. The correct answer reflects the flexibility in scheduling these counts, which can be monthly, quarterly, or semi-annually, depending on the organization's needs and inventory turnover rates.

Using this range allows organizations to adapt their inventory management processes to fit operational requirements and the nature of their products. For instance, businesses with fast-moving goods may benefit from more frequent counting, while those with slower-moving inventory may opt for less frequent cycles.

The broader range of possibilities in the correct answer is essential for accommodating various business models and ensuring that inventory records remain accurate without overwhelming staff resources.