Multiple Choice

An electrical contractor wants to improve inventory control after losing a $2,000 spool of copper wire. The contractor decides to implement a cycle counting system, where a different subset of items is counted each week so that every material in the warehouse is verified once every three months. The contractor believes this system alone is sufficient to protect the business from future financial losses.

Evaluate the contractor's decision. What is the primary critical flaw in relying solely on this cycle counting approach?

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Updated 2026-05-09

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