Is the difference between the recorded value of inventory based on merchandise bought and received and the value of the actual merchandise in stores and distribution centers divided by retail sales during the period.

a. loss margin

b. shrinkage

c. obsolescence

d. break-even point

e. profit margin

shrinkage

Explanation:

It is a contraction which generated a loss for the firm as the amount of the book value of the inventory is less than the amount of inventory which is actually in the stores and distribution center.

The company's book values inventory at X

while physical count and market value of these count give value Y

as X > Y the company must recognize a shrinkage of their inventory

15 pounds of apples and 6 cups of flour

for submitting your question to

the answer to your question is : c) a government agency or homeowner

due to his line of work, he is most likely employed by a government agency or homeowner due to the other choices not being logical haha.