Question

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as:

a. downsizing
b. shrinkage
c. restitution
d. pillage

Answer 1

Shrinkage refers to losses in retail caused by theft by both outsiders and employees. It is a term used to describe the loss of inventory or cash due to theft, fraud, or administrative errors.

Step-by-step explanation:

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as shrinkage. Shrinkage is a term used in business to describe the loss of inventory or cash due to theft, fraud, or administrative errors. It includes both internal (employee) and external (outsider) theft.

For example, if a retail store notices a discrepancy between the amount of inventory they should have and the actual amount on hand, they may suspect shrinkage. This can be caused by shoplifting, employee theft, or administrative errors in record-keeping.