A cycle count is an inventory management procedure where a small number of inventory items are counted on any given day. Cycle counts differ from traditional physical inventory in that physical inventory stops operation at a facility while all items are counted at one time. Cycle counts are less disruptive to daily operations, provide an ongoing measure of inventory accuracy, and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business operation. The practice should use its ABC analysis to determine how often items should be counted for a particular category. Please note that controlled drugs should be counted more often even though they are a low revenue center based on the general invoicing protocols.
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