Definition of Shrinkage:

  1. Differences between book and inventory are due to misunderstandings or records, or are due to theft, corruption, theft or waste.

  2. There is a difference between pension registered stock (books) and real stock (physical). The book inventory uses the amount of dollars available to retailers to determine the exact amount of inventory. When retailers receive receipts for selling products, they record the dollar value of inventory on their balance sheet as current assets. For example, if a retailer receives million 1 million in products, inventory will increase by million 1 million. Each time an item is sold, the cost of the product reduces the inventory and the product is recognized based on the price sold.

  3. Depreciation inventory loss is due to factors such as employee theft, shoplifting, typography, supplier fraud, malfunction and cash errors. The deduction is the difference between the stock listed on the company's balance sheet and the actual stock. This concept is a big problem for retailers as it results in loss of inventory, which in turn reduces profits. .

  4. The process, event or rate of contraction.

Synonyms of Shrinkage

Depletion, Emaciation, Wearing away, Wear and tear, Depreciation, Derogation, Corrosion, Evaporation, Consumption, Emaceration, Impairment, Waste, Drying, Remission, Cut, Shortening, Shrinkage, Exhaustion, Truncation, Expenditure, Using, Reduction, Ablation, Loss, Disparagement, Attenuation, Impoverishment, Using up, Leakage, Parching, Diminution, Erosion, Preshrinkage, Atrophy, Wastage, Wasting, Attrition, Retrenchment, Drying up, Lessening, Dip, Decrement, Curtailment, Decrease, Withering, Dissolution, Sanforizing, Shrinking, Dissipation, Shrinking, Cutting, Detraction, Extraction, Drain, Deliquescence, Wearing, Searing, Shriveling, Reduction in size, Retraction, Thinning

How to use Shrinkage in a sentence?

  1. You may need to check all your accounts to make sure no refunds have been made.
  2. Deductions result in profits because the stock can be bought, but not sold.
  3. Give the curtains a good seam length so they can shrink.
  4. Reduce inventory losses due to situations such as theft, supplier fraud, employee theft and typos.
  5. RFID tags have led to a sharp decline in retailers selling portable items such as SD cards, flash drives and hockey picks.
  6. The difference between registered stock and actual stock is measured by payment.
  7. George explained to Jerry that he was in the pool and shrunk, so the woman laughed at him.

Meaning of Shrinkage & Shrinkage Definition