When taking a physical inventory under the retail method,it is necessary to know only the quantity of items on hand.

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When taking a physical inventory under the retail method, it is necessary to know not only the quantity of items on hand but also the cost and retail value of those items. This is because the retail method calculates the ending inventory value by using a percentage markup on the cost of goods sold. Therefore, knowing the cost and retail value is essential for accurate inventory calculations.

When Taking a Physical Inventory Under the Retail Method,it Is