What factors contribute to inventory shrinkage


Response to the following questions:

1. What factors contribute to (or cause) inventory shrinkage?

2. A What accounts are used in a periodic inventory system but not in a perpetual inventory system?

3. Segoe Company reports beginning inventory of 10 units at $50 each. Every week for four weeks it purchases an additional 10 units at respective costs of $51, $52, $55 and $60 per unit for weeks 1 through 4. Calculate the cost of goods available for sale and the units available for sale for this four week period. Assume that no sales occur during those four weeks.

 

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Cost Accounting: What factors contribute to inventory shrinkage
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