PGA Level 2 Merchandising/Inventory Practice Exam 2025 – Your All-In-One Guide to Mastering the Exam!

Physical inventory counting refers to the process of manually counting the items on hand within a shop or storage area. This process is typically carried out at regular intervals to ensure that the actual stock on hand matches the quantity recorded in the inventory management system. Regular physical counts help identify discrepancies that may arise due to shrinkage, stockouts, or miscounted items.

The manual nature of this counting process is crucial for maintaining accurate inventory records and ensuring the integrity of the stock that is available for sale. By performing physical counts, businesses can more effectively manage their inventory levels, improve product availability, and ultimately enhance customer satisfaction.

In contrast, counting stock digitally, recording sales data, or making estimations do not represent a physical count of stock. These methods may support inventory management but do not accurately reflect the actual quantities present at a given time.