Term Definition
Shrinkage The term used to describe inventory losses resulting from shoplifting, employee theft, inaccurate paperwork, damaged or misplaced merchandise, and vendor error.
Physical Inventory A count and inspection of all the merchandise in a store.
Book Value The amount of money inventory is shown to be worth in the business’s records.
Shoplifting The removal of items from a store with the intention of not paying for them.
Employee Theft The unauthorized taking of merchandise by an employee from an employer.

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