The unaccounted-for reduction in the company's inventory that results from theft is called:

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Shrinkage is the term used to describe the unaccounted-for reduction in a company's inventory, often due to theft or other types of loss. Physical defalcation refers to the embezzlement or misappropriation of funds or assets, while spoilage refers to the damage or destruction of inventory that makes it unsellable. Misappropriation of intangible assets refers to the theft of intellectual property or other intangible assets, such as trade secrets or patents.

The Unaccounted-For Reduction in the Company's Inventory That Results from Theft