Fluctuation loss, often referred to in the context of economics and finance, generally describes the losses that occur due to variations or fluctuations in market conditions, such as prices, interest rates, or demand. It can also refer to unexpected changes in supply and demand that impact stability in a market or business environment. In a more specific context, fluctuation loss might occur in inventory management, where businesses may face losses due to fluctuations in demand that lead to overstock or understock situations.
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