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compensate for stock variations. For example, you may find that, from time to time, your recorded stock levels differ from what is on the shelves. These variations can be caused by data-entry errors, spoilage and theft, etc.

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revalue your stock. Sometimes the quantity of items recorded may be correct, but their values are incorrect. For example, a range of items may become outdated.

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track the assembly of individual items into finished items. Many retailing and manufacturing businesses combine a number of stock items to create finished items. For example, a retailer may combine a bottle of perfume, lotion and bath salts to make up a gift pack.