A surplus in anything ...is a bad thing. When you
Post# of 65629
Posted On: 05/12/2016 10:57:04 PM
A surplus in anything ...is a bad thing. When you have a surplus...you ripped off someone....or something. That is auditing 101.
Reasons for Surplus
A surplus occurs when there is some sort of disconnect between supply and demand for a product, or when some people are willing to pay more for a product than others. For example, if there were a set price for the product, and everyone expected to pay the same amount, surplus and shortage would be nonexistent.
http://www.investopedia.com/terms/s/surplus.asp (non-bias)
An ideal situation is a balance....to minimal shrink. Anyone that has ever been through an audit understands that "positive shrink"
surplus).....is worse than "shrink". Both numbers need to be small....but a surplus(positive shrink)....is a major red flag when it breaches the minimal variable.
Reasons for Surplus
A surplus occurs when there is some sort of disconnect between supply and demand for a product, or when some people are willing to pay more for a product than others. For example, if there were a set price for the product, and everyone expected to pay the same amount, surplus and shortage would be nonexistent.
http://www.investopedia.com/terms/s/surplus.asp (non-bias)
An ideal situation is a balance....to minimal shrink. Anyone that has ever been through an audit understands that "positive shrink"
surplus).....is worse than "shrink". Both numbers need to be small....but a surplus(positive shrink)....is a major red flag when it breaches the minimal variable. 
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