Shrinkage

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Shrinkage

Discrepancy between a firm's actual inventory and its recorded inventory due to theft, deterioration, loss, or clerical problems.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Shrinkage

A reduction in inventory due to a loss, theft, deterioration, or accounting error. Deterioration is a normal part of trading perishable goods. For example, a grocery store selling milk will likely experience shrinkage due to some of the milk spoiling. Shrinkage can be a tax write-off for the company experiencing it.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.