The difference between the retail book value of ending inventory as compared to the actual physical ending inventory value is _____.

Question

Quizplus · Accepted Answer

The difference between the retail book value and the actual physical ending inventory value can be either a shortage or an overage. If the retail book value is higher than the actual physical ending inventory value, it is an overage. If the actual physical ending inventory value is higher than the retail book value, it is a shortage. Therefore, both shortage and overage are possible outcomes.

The Difference Between the Retail Book Value of Ending Inventory