A few years ago, on my way to the office, I was listening to a radio story about the quarterly earnings of a major U.S. retailer. In the story, losses from damaged goods were lumped in the same financial earnings/loss bucket as retail shrinkage and theft.
This type of financial reporting is not surprising, as it has long been true that there’s a certain amount of damage loss companies find acceptable. It can be anywhere from two to eight percent, but every business in every industry manages to find its own “acceptable” damage rate.