The manager of a retail store notices that 7% of the inventory is missing. She doesn't know if the merchandise was stolen, lost, or broken. This missing inventory is called ______ and is one of the criteria used to validate integrity tests.
A) a loss leader
B) inventory obsolescence
C) product pilferage
D) shrinkage

Question

Quizplus · Accepted Answer

Shrinkage is the term used to describe inventory that is unaccounted for, and it can be caused by theft (product pilferage), loss, or damage. Therefore, option D is the best answer. A loss leader refers to a product that is sold at a loss to encourage customers to buy other items, while inventory obsolescence refers to products that are no longer in demand or are outdated. Neither of these options addresses the issue of missing or unaccounted for inventory.

The Manager of a Retail Store Notices That 7% of the Inventory