Cycle counting . a. is used to determine average cycle service level
b. is used to identify shelves needing repair
c. has a lower tolerance level for slower-moving items
d. follows a schedule such that the quantity of every SKU in inventory is counted at least once a year

d. follows a schedule such that the quantity of every SKU in inventory is counted at least once a year

Explanation:

An inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.

Basically, an inventory can be classified into three (3) main categories;

I. Finished goods.

II. Work in progress (WIP).

III. Raw materials.

An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.

Generally, it's important for a business to have a good idea of how many inventory it has at a specific period of time. In order to determine this, a process referred to as cycle counting can be used.

Cycle counting is a process that typically involves counting all stock keeping units (SKUs) for a specific period of time (in years), following a schedule that requires counting all items (every SKU in inventory) at least once a year.

Hence, a count of the stock keeping units (SKUs) simply means that you're physically counting how many units of each stock keeping unit (SKU) is carried at a particular point in time.

Furthermore, employees who are referred to as cycle counters are saddled with the responsibility of counting the stock keeping units (SKUs) and recording the information.

In cycle counting, the important items are counted more frequently by the cycle counters.

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