shrinkage (redirected from shrinkages)

Shrinkage

The amount by which inventory on hand is shorter than the amount of inventory recorded.

Notes:

The missing inventory could be due to theft, damage, or book keeping errors.

See also: Beginning Inventory, Ending Inventory, Inventory, Inventory Turnover

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Shrinkage

Discrepancy between a firm's actual inventory and its recorded inventory due to theft, deterioration, loss, or clerical problems.

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shrinkage

The loss of inventory encountered in the regular course of business. A firm engaged in transporting grain can expect to lose part of its product to weather, careless handling, and various other factors.