CPIM Practice Exam

What is record accuracy?

1. A measure of current sales figures compared to historical data

2. A measure of compliance with inventory regulations

3. A measure of how well recorded inventory matches actual quantities

4. The accuracy of financial projections related to inventory

The correct answer is: A measure of how well recorded inventory matches actual quantities

Record accuracy refers to how well the recorded inventory matches the actual quantities present in stock. This concept is critical in inventory management as it directly influences decision-making, supply chain efficiency, and customer satisfaction. When recorded inventory accurately reflects the physical inventory, it enables businesses to maintain optimal stock levels, avoid stockouts, and reduce excess inventory. Ensuring record accuracy is vital for effective operations, as inaccuracies can lead to significant issues such as lost sales, increased carrying costs, and misinformed forecasting. Therefore, measuring record accuracy helps organizations identify discrepancies and implement corrective actions to improve overall inventory management practices.