The initial stage of exchange is known as barter exchange. Under barter economy, the goods are exchanged for goods. This implies that if one wants some commodity, this can be exchanged only by giving some other commodity in exchange.
Records are kept in a more compact manner so that reference to them is facilitated. On the spot comparison of the physical stock of an item with its book balance is not facilitated.
There would be less chances of mistakes being made as entries will be made at the same time as goods are received or issued by the person actually handling the materials. Store records are dispersed over a wide area.
Last-in-First out method (LIFO) - It is a method of pricing the issues of materials. This method is based on the assumption that the items of the last batch (lot) purchased are the first to be issued.
Salesman having the necessary training and aptitude are rare. Salesman who have adequate knowledge and necessary skill are found wanting in many concerns at the counter and elsewhere, they are unable to do full justice to their work.
An outstanding feature of modern economic life is the institution of private property. By private property, we mean the things owned exclusively by a person or group of persons with the rights to use them as they desire.
By division of labor we mean an arrangement where by people perform different functions at the same time. Though the term, 'Division of labor' is applied in the field of economics, yet infact division of labor in modern society is not limited simply to labor but applies to all the factors of production and exists beyond the purely economic field.
Observation forms the basis of any scientific enquiry. It is the primary mode of acquiring knowledge about the environment. Through systematic observation, and a process of induction, the investigator forms hypotheses, which are tested later by using experimental methods.
The introspection method has advantages as well as disadvantages. First, let us consider the advantages. It is an easy and simple method and provides direct observation of mental processes. By other scientific methods, the mental processes cannot be directly observed since those are purely private and personal experiences.
A cooperative society offers several advantages as compared to any other forms of organisations. Following are the some of the important advantages of cooperative society.