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  • 25-05-2021
  • Mathematics
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What is shrinkage in Accounting?

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sqdancefan
sqdancefan sqdancefan
  • 25-05-2021

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Explanation:

Shrinkage is the loss of inventory from causes other than normal use or sales. It is the difference between the inventory on the books and the amount of inventory actually available for use. Typical causes of shrinkage are theft, damage, fraud, counting error, administrative error.

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