shrinkage

Definition

Inventory recorded on a company's books but not on hand, due to theft, loss or accounting error.

Use shrinkage in a sentence

The shrinkage experienced by the warehouse was both substantial and unexpected as we did not realized the theft had occurred.

​ Was this Helpful? YES  NO 5 people found this helpful.

The production department has tried to work with an efficiency consultant to try and determine areas to improve processes and reduce shrinkage.

​ Was this Helpful? YES  NO 11 people found this helpful.

The looters in Detroit provided huge headaches for business owners, who will now have to account for shrinkage from all the lost and damaged good.

​ Was this Helpful? YES  NO 9 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
shrink inventory cost