INVENTORY SHRINKAGE Definition

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INVENTORY SHRINKAGE is a reduction in the physical amount of inventory that is not easily explainable. The most common cause of shrinkage is theft.

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OPERATING EFFECTIVENESS is how an internal control was applied, the consistency with which it was applied, and by whom.

VAR is an acronym for Value-Added Reseller (usually of technology products) or, in finance, Value at Risk.

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