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Inventory Shrinkage
The loss of products between purchase and sale, often due to theft, damage, or errors in counting.
Physical Count
The process of counting the actual number of items in inventory, typically to verify accounting records or when preparing financial statements.
Net Method
An accounting method that records purchases at the net price after deduction of any purchase discounts.
Perpetual Inventory System
An inventory accounting practice that instantly processes and records purchases or sales utilizing computerized point-of-sale systems alongside enterprise asset management software.
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