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shrinkage definition - finance
The difference between inventory that a company believes it has on hand and what the actual physical count reveals the company has. Shrinkage may occur due to theft, loss, or damage. Record-keeping errors also can produce shrinkage.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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