A variation between the physical inventory and the perpetual inventory totals is called:

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The difference between the physical inventory (counting the actual items on hand) and the perpetual inventory (keeping track of inventory in real-time through software) is called shrinkage. Shrinkage can occur due to theft, damage, miscounts, or other factors that lead to a loss of inventory. Options A, B, and D are not accurate terms for this situation.

A Variation Between the Physical Inventory and the Perpetual Inventory