Accounting MascotAccounting Q&A

What is deficiency stock?
submitted by Priscilla

Camshaft

That's the shortfall in inventory levels when the stock on hand is less than what is needed to hit production targets. Essentially, it's a situation where stock is insufficient to fulfill demand. It's important because the company will likely have shipping delays or even lost revenue.

Mick Farlin

It's when you don't have enough inventory to cover what you need to sell or ship. Stock deficiency is probably a more appropriate term.

Jingles the Clown

It's when a company doesn't have enough stock of a product. So, they're missing some items that they need to sell or use in production.

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