If a physical ending inventory amount exceeds the book inventory figure,the retailer has a stock shortage.

Name: If a physical ending inventory amount exceeds the book inventory figure,the retailer has a stock shortage.
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Question

Quizplus · Accepted Answer

If the physical ending inventory amount exceeds the book inventory figure, it means that the retailer has an excess of stock or overstock. On the other hand, if the book inventory figure exceeds the physical ending inventory amount, it indicates a stock shortage or shrinkage.

If a Physical Ending Inventory Amount Exceeds the Book Inventory