One of the main advantages to the retail inventory method over the gross profit is the retail method uses current-period estimates whereas the gross profit used past periods.

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The retail inventory method takes current-period estimates of cost and retail value to determine the ending inventory, while the gross profit method uses past periods' data to estimate the cost of goods sold and gross profit margin. This makes the retail method more accurate in reflecting current inventory levels and costs.

One of the Main Advantages to the Retail Inventory Method