SIMULATION -
______________ is required not only for theft, but for procedures to detect errors, avoid waste and insure a proper amount of inventory is maintained.
Inventory control
The term that best completes the given sentence is "Physical inventory." Physical inventory refers to the process of physically counting and verifying the existence and condition of all inventory items in a business. This process is essential not only for preventing and detecting theft but also for identifying and addressing errors and waste in the inventory management process.
Maintaining an accurate physical inventory count is critical for businesses to operate efficiently and effectively. It ensures that the inventory records accurately reflect the number of items in stock and their value, which is essential for financial reporting and tax purposes. Additionally, physical inventory helps detect and prevent fraud, including theft by employees, suppliers, or customers.
Physical inventory also helps in identifying inefficiencies in the inventory management process, such as overstocking or understocking, which can lead to increased costs, lost sales, or customer dissatisfaction. It allows businesses to adjust their inventory levels to match customer demand and reduce waste.
In conclusion, physical inventory is a crucial process for businesses to maintain accurate inventory records, detect and prevent fraud, and improve inventory management efficiency.