What type of inventory is used to determine the exact on-hand quantity at any moment?

The correct choice identifies physical inventory as the method used to determine the exact on-hand quantity at any moment. Physical inventory involves taking a complete count of all stock items, allowing for an accurate assessment of inventory levels. This process typically requires a thorough counting of products in a pharmacy and is usually performed periodically to reconcile the physical stock with inventory records.

The reason physical inventory is particularly effective for ensuring accuracy is that it provides a snapshot of what is physically available at a specific time. This can help identify discrepancies due to factors such as theft, damage, or accounting errors.

In contrast, the other inventory methods focus on different approaches. Periodic inventory relies on regular intervals to assess stock levels but does not provide real-time data. Perpetual inventory continuously tracks inventory levels and updates in real time, but can sometimes lead to inaccuracies if not managed properly. Cycle count inventory is a method where a portion of the inventory is counted on a rotating schedule, which may not provide an exact picture of stock levels at any one moment, as it relies on ongoing counts rather than a complete inventory check.

Therefore, while all the mentioned methods have their merits, physical inventory stands out for its ability to deliver a precise count anytime.