Common enough in my childhood (1950s to 1960s, mid-/northern-UK)

We used it as an elimination game for deciding who would be 'it' in such games as Tig (or Tag, if you are so inclined). One beat per word and/or syllable, move on to next person each beat.
The sneaky art (if you were the person 'doing' it) was knowing whether seven and heaven were one beat or two to give your desired outcome. Children was always two though.

I preferred spuds 'One potato, two potato, three potato, four. Five potato, six potato, seven potato, more.' with one beat per word, and the last spud eliminated on 'more'. Each child proffered two spuds (fists side by side) and the last still holding out a fist was the chosen one.