incoming freight
storage costs
insurance
clerical errors
Answer is Right!
Answer is Wrong!
The correct answer is C. insurance.
Shrinkage costs are the costs associated with the loss of inventory. This can be due to a number of factors, such as theft, damage, or obsolescence. Insurance can help to protect businesses from these losses.
Incoming freight is the cost of shipping goods into a warehouse or distribution center. Storage costs are the costs of storing goods in a warehouse or distribution center. Clerical errors are errors made by employees in the course of their work.
While all of these costs can impact a business’s bottom line, they are not considered to be shrinkage costs.