The term used when the physical inventory account doesn't match the Inventory account balance at the end of the period is

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Inventory shrinkage refers to the loss of inventory that occurs due to theft, damage, spoilage, or any other reason. It is reflected in the physical inventory account, which shows the actual amount of inventory on hand, and is compared to the inventory account balance in the accounting system. If they don't match, it indicates that there is a discrepancy that needs to be investigated and resolved. Inventory degradation and inventory theft are specific types of inventory shrinkage, but they don't cover all the possible reasons for the discrepancy. Inventory management is a broader term that encompasses all the activities involved in managing inventory, including ordering, receiving, storing, tracking, and selling it.

The Term Used When the Physical Inventory Account Doesn't Match