Question

Which of the following is true of normal shortages? They do not include theft and shrinkage. These goods are no longer available for sale. This loss is considered in calculating cost-to-retail ratio. They are deducted from both the cost and retail columns.

Answer 1

Answer:

The correct answer here would be the 1st option given in the answer choices or options or They do not include theft and shrinkage.

Explanation:

• From a business standpoint, normal shortages basically indicate comparatively lower inventory availability of goods and services based on their consumer demand or respective sales orders by consumers or buyers.
• Normal shortage implies that the amount or units goods and services available to the company or firm is not sufficient to fulfill the required consumer or buyer demand for those commodities or services.However,while calculating or computing normal shortage, any unwanted thefts and shrinkage or inadvertent damages of the concerned commodities or goods are not usually considered.