An example of shrinkage costs is

A. incoming freight

B. storage costs

C. insurance

D. clerical errors

Answer: Option D

Solution(By Examveda Team)

An example of shrinkage costs is clerical errors. Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage in transit or in store, and cashier errors that benefit the customer.