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Sometimes there are errors when it comes to inventory management.
Often, it's just an accident. Some bit of inventory might have been forgotten in a different warehouse or while in transit.
Maybe there's so much of it that managers just made estimates of what they had.
If only it were that easy. Did you know that some people will intentionally misstate their inventory levels to make their companies look better or worse than they really are?
That's called fraud.
Usually people commit fraud to make their businesses look more efficient than they are. They do this by making it reducing the amount of inventory that they claim to have used to make the profit they did in that quarter.