Continuous Stock Verification.

Q26. Write short note on continuous stock verification.
Ans. It is a system of physical stock verification daily or weekly or monthly throughout the year to check all the items in a store three or four times. It also includes the surprise checking of stock of material. In large firm such work has to be done by a separate department only for such work. But in case of small firm, such work is performed by department head by rotation.

Its advantages are as follows:

  1. Closure of normal functioning is not necessary as in case of annual stock verification.
  2. Early detection of any dispensaries and their correction.
  3. Quick compilation of final accounts.
  4. Work is performed by specialized staff appointed for such purpose.

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