During a year-end inventory reconciliation, you find that shrinkage for a high-value OTC item is 15% above the expected rate. What does accurate data analysis suggest as the next step?
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A
Accept the variance as normal seasonal fluctuation
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B
Investigate the root cause — including potential theft, miscounts, or receiving errors — before adjusting inventory records
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C
Write off the entire discrepancy immediately
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D
Increase the reorder point to compensate