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A good coding system must allow for expansion.
What is meant by this feature of coding?It allows other items to be added.
For example, if you used a two digit numerical code for inventory items, then you would be limited to coding for 100 items (00 to 99). You would be in difficulty if your business expanded and you needed to code for eg 120 items.
Choosing a 4 digit code at the start would allow lots of expansion.
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