Method of Codification should be :

The method of codification in accounting refers to the systematic assignment of codes (numbers, letters, or alphanumeric combinations) to different accounts.

The primary purpose of codification is to facilitate the grouping of accounts in a systematic and logical manner. When accounts are properly grouped through codification, similar types of accounts are placed together, making the entire accounting system more organized and efficient.

For example:

• All asset accounts can be grouped under codes starting with 1 (like 1001, 1002, etc.)
• All liability accounts under 2 (like 2001, 2002, etc.)
• All revenue accounts under 3, and so on

While analyzing the other options:

Option 1 mentions "easy to process data" - This is merely a benefit or outcome of good codification, not its defining characteristic.

Option 2 states "an identification mark" - This is too limited in scope. Codification does more than just identify; it creates a systematic structure.

Option 3 includes the word "cryptic" which contradicts the purpose of codification. A good coding system should be clear and logical, not mysterious or difficult to understand.

Therefore, Option 4 is correct as it captures the essential characteristic that codification must lead to systematic grouping of accounts, which is its fundamental purpose in maintaining organized accounting records.