What condition is not necessary in order to use the retail method to provide inventory results?
A) Retailer keeps a record of the total costs of products sold for the period.
B) Retailer keeps a record of the total costs and retail value of goods purchased.
C) Retailer keeps a record of the total costs and retail value of goods available for sale.
D) Retailer keeps a record of sales for the period.

Question

Quizplus · Accepted Answer

The retail method is based on the relation between the cost and the retail price of the inventory. Therefore, the retailer needs to keep records of the total retail value of goods purchased and available for sale, as well as sales for the period. Keeping records of the total cost of products sold may be helpful but it is not necessary for implementing the retail method.

What Condition Is Not Necessary in Order to Use the Retail