Book Inventory refers to the stock of books that a business has in hand according to recorded figures. It is an essential component in inventory management, impacting both financial reporting and operational efficiency.
Physical Inventory, also known as a physical stock check, is the process of counting the physical balance of stock items at a particular time to facilitate stocktaking under systems like inventory control or continuous stocktaking.
The Retail Inventory Method is an inventory valuation technique used within the cost method of accounting, where similar merchandise is pooled to estimate the average percentage of cost to retail price.
Shrinkage refers to the difference between the actual physical inventory and the amount that should be on hand according to the book inventory, as well as weight loss experienced in various contexts such as natural grain drying and commodity processing.
