Which type of counting is performed throughout the year by counting specific groups of inventory each month?

Cycle counting is a method used to manage inventory through systematic counting of specific groups of items throughout the year. This approach allows for a detailed, ongoing audit of inventory, ensuring accuracy without the need for a complete inventory shutdown. By counting a designated set of items each month, businesses can identify discrepancies and trends in inventory levels more frequently, leading to better management and accuracy.

This method contrasts with periodic counting, which involves counting all inventory at specified intervals, such as annually or quarterly, thereby missing the continuous feedback and adjustments that cycle counting provides. Annual and quarterly counting methods lack the same level of frequency and responsiveness, making cycle counting the preferred option in dynamic inventory environments where accuracy is critical.