Also called Inventory shrinkage.
Not a rule. Bookkeeping convention — not codified. US GAAP governs recognition, measurement and presentation, not bookkeeping mechanics. Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- write-down (goods still there, worth less)
- cost of revenue unqualified
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Statements
Defined in Lexicon. This page is generated from that document, so the two can't disagree.