Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.
A)Credit terms
B)FOB destination
C)FOB shipping point
D)Periodic inventory system
E)Perpetual inventory system
F)Inventory shrinkage
G)Single-step income statement
H)Multiple-step income statement

Inventory Shrinkage

The loss of products between purchase from the supplier and sale to the customer, often due to theft, damage, or errors in inventory management.

Theft

An act of stealing; unlawfully taking another's property without their consent.

Damage

The physical harm or impairment to property or goods, potentially leading to financial loss or liability.