Labor and Employment Law
Business Accounting and Bookkeeping
Stocks

Why do organisations do stock taking?

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Answer

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Wiki User
06/28/2009

Stocktaking is done to see if the goods you have sold match up to the takings and also to see what profit or loss and GP% you have made

A very simple example, if you sell ten items at £1.00 each your cash takings should be £10.00 the profit and % profit will depend on the (cost price) price you bought the items for .Stocktaking shows what profit or loss is made and can show up theft,wrong pricing what sells well what sells slow ,and also the value of your stock in hand for end of year .

Stocktaking play a major part in many sales outlets