In the cost method of accounting,to conduct a physical inventory,a retailer must ________.

Question

Quizplus · Accepted Answer

In the cost method of accounting, the retailer must determine the actual cost of each item in order to conduct a physical inventory. This involves counting the physical inventory and valuing it at its cost, which can be determined by various methods such as FIFO or weighted average cost. Converting the retail selling price to cost using the cost complement, increasing retail value to reflect additional markups, or utilizing a LIFO system are not necessary for conducting a physical inventory using the cost method.

In the Cost Method of Accounting,to Conduct a Physical Inventory,a