CIM Inventory Auditing & Data Accuracy 2

Question 1

Which audit method involves counting a small subset of SKUs every day so that all items are counted multiple times per year?

Accepted Answer

Cycle counting

Answer

Cycle counting divides inventory into segments counted on a rotating schedule, eliminating the need for a single annual shutdown count.

Question 2

A warehouse reports 500 units on-hand in the WMS, but a physical count yields 487 units. What is the inventory record accuracy (IRA) for this SKU?

Accepted Answer

97.4%

Answer

IRA = (487 / 500) × 100 = 97.4%, measuring how closely records match physical reality.

Question 3

Under ABC cycle-counting, 'A' items are typically counted:

Accepted Answer

Most frequently — often monthly or more

Answer

A-class items represent high value or high velocity and are counted most frequently to maintain tight accuracy.

Question 4

What is the primary purpose of a 'blind count' during a physical inventory audit?

Accepted Answer

To prevent counters from being biased by system quantities

Answer

A blind count withholds system quantities from counters so they record what they actually see rather than confirming the system figure.

Question 5

Which document is typically used to reconcile discrepancies between physical inventory counts and system records?

Accepted Answer

Inventory adjustment memo

Answer

An inventory adjustment memo (or adjustment transaction) formally records and authorizes corrections to system quantities after a count discrepancy is investigated.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Inventory Auditing & Data Accuracy 2