Retail method
Revision as of 10:44, 20 December 2018 by Gary (talk | contribs) (Created page with " Retail method is a method used to determine the value of the ending inventory using a cost-toretail ratio. Often used for interim financial reports. *Gross profit metho...")
Retail method is a method used to determine the value of the ending inventory using a cost-toretail ratio. Often used for interim financial reports. *Gross profit method. A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine the value of ending inventory if a loss from fire occurs.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Retail method. A method used to determine the value of the ending inventory using a cost-toretail ratio. Often used for interim financial reports. *Gross profit method. A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine the value of ending inventory if a loss from fire occurs.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
