Economics · Business Economics
In the context of business economics and warehouse operations, 'inventory shrinkage cost' primarily refers to the cost incurred due to:
- 1selling obsolete or outdated material at discounted prices
- 2the physical loss of stock through pilferage, theft, or damage✓
- 3the administrative tasks involved in adjusting the frequency of orders
- 4renegotiating storage unit rental fees
Correct answer
the physical loss of stock through pilferage, theft, or damage
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