(i) opening stock (ii) goods sent on consignment (iii) goods returned by the consignee (iv) closing stock
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1. Consignment stock at the beginning2. Goods sent on consignment3. Goods returned by the consignee4. Consignment stock at the end of the period It is a cost-effective method of pricing with onus of cost for storage and transport or handling - upon the immediate purchaser or the end-user. Maximize profit at the new sale price for old stock and thereby have fresh inventory in the seller's warehouse which normally fetch or attract customers in general.
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