The need of Codification is :

The Encryption of data

Correct answer: Option (4) → The Encryption of data

Concept: Codification and secure data handling in a computerised accounting system, from Overview of Computerised Accounting System.

Codification assigns codes to accounts and transactions so that data can be identified, grouped and processed by the machine; in a computerised system this coded data is then stored in the data vault, where it is protected by encryption – the information is scrambled so that it cannot be read without authorisation. Per the NCERT exercise for this chapter, the keyed response for the need of codification is the encryption of data. Hence Option (4).