Asked by
kaylie rodesiler
on Oct 20, 2024
Verified
The retail inventory method estimates the cost of ending inventory by applying the gross profit ratio to net sales.
Retail Inventory Method
The retail inventory method is an accounting technique used by retailers to estimate their inventory's ending balance/cost based on the relationship between the cost of merchandise and its retail price.
- Acquire knowledge on the retail inventory method and how it is applied.
Verified Answer
KH
Learning Objectives
- Acquire knowledge on the retail inventory method and how it is applied.
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