SHRINKAGE Definition

Bookmark and Share

SHRINKAGE is: 1. the amount by which something shrinks; 2. process or result of becoming less or smaller (Example: "The material lost 2 inches per yard in shrinkage") or, 3. the act of stealing goods that are on display in a store (Example: "Shrinkage" is the retail trades euphemism for shoplifting).

Learn new Accounting Terms

INVESTMENT CENTER is the responsibility center within an organization that has control over revenue, cost, and investment funds. It is a profit center whose performance is evaluated on the basis of the return earned on invested capital, e.g. corporate headquarters or a division of a large decentralized organization.

DIRECT EXPENSE is that portion of expense that is directly expended in providing a product or service for sale and is included in the calculation of COST OF GOODS SOLD, e.g. labor and inventory.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.