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Inventory Losses
Reductions in inventory quantity or value, which can be caused by factors such as theft, spoilage, or obsolescence.
Transportation Costs
Expenses incurred in the process of moving goods from one location to another, including freight, shipping, and handling fees.
Inventory Carrying Cost
The total cost associated with holding and storing unsold goods, including storage, insurance, and opportunity costs.
Periodic Inventory Systems
An inventory system that updates inventory levels at specified intervals, requiring physical counts to determine cost of goods sold.
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