An example of shrinkage costs is

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.