Shrinkage can:
A) be inventory's recorded value based on merchandise bought and received
B) be inventory reduction caused by poor bookkeeping
C) be physical inventory in stores and distribution
D) not be caused by shoplifting
E) not be caused by damaged goods

Question

Quizplus · Accepted Answer

Shrinkage refers to the reduction in inventory that occurs due to theft, damage or errors in record-keeping. Option B addresses the reduction caused by poor bookkeeping, making it the best choice. Options A, C, D and E either do not address the cause of shrinkage or make incorrect statements about it.

Shrinkage Can