Inventory shrinkage is the difference between inventory recorded and inventory counted.

Question

Quizplus · Accepted Answer

Inventory shrinkage is a common term used to describe the difference between inventory recorded in an accounting system and inventory counted physically. It occurs due to theft, damage, administrative errors, or inaccurate record-keeping, and can affect a company's profitability and efficiency. Organizations must take measures to reduce inventory shrinkage by implementing better control methods, training employees, and using technology to track inventory accurately.

Inventory Shrinkage Is the Difference Between Inventory Recorded and Inventory