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