________ is the difference between the recorded value of inventory based on merchandise bought and received and the value of the actual merchandise in stores and distribution centers divided by retail sales during the period.
A) Loss margin
B) Shrinkage
C) Obsolescence
D) Break-even point
E) Profit margin

Question

Quizplus · Accepted Answer

Inventory shrinkage is the difference between the recorded value of inventory (at retail prices) based on merchandise bought and received and the value of the actual inventory (at retail prices) in stores and distribution centers, divided by retail sales during the period.

________ Is the Difference Between the Recorded Value of Inventory