How often should an annual inventory be conducted?

An annual inventory should be conducted once a year, which aligns with the correct choice. This process allows organizations to assess the value and condition of their inventory systematically, ensuring that records are accurate and that any discrepancies can be identified and addressed timely. Conducting an inventory annually helps organizations to manage their stock levels, reduce waste, and understand usage patterns, all of which are essential for effective resource management and strategic planning.

Monthly, quarterly, and bi-annual inventories might not be as practical for all organizations, especially if the inventory levels do not fluctuate significantly or if the resources are limited. While these alternatives can be useful in specific circumstances, the annual inventory is the standard procedure that provides a comprehensive overview of the inventory status at least once per year.