What is inventory cycle count variance?
Short answer
Cycle count variance is the physical quantity counted less the recorded book quantity for the same item and location. A count of 97 against book stock of 100 gives a variance of -3 units. Multiplying by a $12 unit cost gives -$36. Review both net and absolute cost differences because positive and negative discrepancies can cancel in a net total.
Differences of -$36 and +$60 sum to a $24 net variance but $96 of absolute variance. The absolute figure describes the total size of discrepancies without canceling their signs.
Does a count variance prove inventory loss?
No. Confirm units, locations, cutoff timing, and unposted movements before assigning a cause or adjusting the stock record. The worksheet identifies a difference; it does not establish its explanation.