Retail Method
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Description
A method of estimating the cost of goods sold and ending inventory. Similar to the gross profit method, except that the cost ratio is based on current cost-to-retail price relationships rather than on those of the prior year.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Inventory valuation#Methods used to estimate inventory cost
Learning Material
Covered in Topic(s)
| Inventories & the COGS |