Asked by
Benjamin Szlamkowicz
on Oct 16, 2024
Verified
The retail inventory method estimates the cost of ending inventory by applying the gross profit ratio to net sales.
Retail Inventory Method
An accounting method used to estimate inventory cost for retail businesses by applying a constant gross margin percentage.
Gross Profit Ratio
A financial metric that measures a company's gross profit as a percentage of its revenues, indicating efficiency in using labor and supplies.
- Learn the core ideas and apply the retail inventory method, focusing on its estimation strategies.
Verified Answer
LA
Learning Objectives
- Learn the core ideas and apply the retail inventory method, focusing on its estimation strategies.
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