Final answer:
Inventory shrinkage can be determined by comparing the information from the periodic inventory system to the physical count.
Step-by-step explanation:
The correct option is a) info from the periodic inventory system to the physical count. Inventory shrinkage refers to the loss of inventory between the recorded amount in the books and the actual physical count. By comparing the information from the periodic inventory system (which tracks inventory periodically) to the physical count, businesses can determine the extent of inventory shrinkage.
Inventory shrinkage is found by comparing the beginning inventory plus purchases minus the CGS to the actual physical inventory count. This comparison exposes discrepancies, helping businesses address losses from inventory shrinkage.
Inventory shrinkage can be determined by comparing the beginning inventory plus purchases minus Cost of Goods Sold (CGS) to the actual inventory balance from a physical count. This method helps businesses reconcile their book inventory records with their actual on-hand inventory to identify any discrepancies which might be due to theft, damage, errors, or other factors resulting in inventory loss.
By contrasting the expected inventory levels, calculated as the starting inventory plus any inventory purchases minus the CGS over a period, with the physical inventory count, businesses can pinpoint issues in inventory management. If the physical count is lower than the calculated inventory, then shrinkage has occurred. It's critical for companies to accurately measure and understand shrinkage so they can implement strategies to minimize these losses.